Which of the following is most correct?
A) Options are usually exercised early.
B) Options are never exercised early.
C) Valuable options are usually sold rather than exercised.
D) The option writer decides when and if to exercise.

Question

Quizplus · Accepted Answer

Options are typically more valuable when sold rather than exercised early because exercising an option early forfeits any remaining time value, whereas selling the option allows the holder to capture this time value.

Which of the Following Is Most Correct