At expiration, the time value of an at-the-money put option is always
A) equal to zero.
B) equal to the stock price minus the exercise price.
C) negative.
D) positive.

Question

Quizplus · Accepted Answer

At expiration, the time value of any option, including an at-the-money put option, is always equal to zero because there is no remaining time for the option to gain value from potential market movements.

At Expiration, the Time Value of an At-The-Money Put Option