Which one of the following is equal to the option price minus the intrinsic value?
A)parity value
B)payoff value
C)option time value
D)strike value
E)profit

Question

Quizplus · Accepted Answer

The option time value is equal to the option price minus the intrinsic value. Option time value refers to the amount of value that is attributed to the time remaining until the option expires. The intrinsic value is the value that an option would have if it were exercised immediately. Therefore, subtracting the intrinsic value from the option price leaves only the time value.

Which One of the Following Is Equal to the Option