Which of the following statements is false?
A) Options are a wasting asset.
B) Option prices almost always exceed intrinsic values.
C) As expiration approaches, the value of the option declines to zero.
D) The intrinsic value of a call is equal to its market value.

Question

Quizplus · Accepted Answer

The intrinsic value of a call option is the difference between the stock price and the strike price, if positive, and does not equal its market value, which also includes time value.

Which of the Following Statements Is False