Only at the expiration date can an investor expect to find the value of call options above their lower bound.

Question

Quizplus · Accepted Answer

The value of call options can be above their lower bound at any time before expiration, not just on the expiration date. The lower bound is determined by the intrinsic value and time value, and market conditions can cause the option price to exceed this lower bound at any point during its life.

Only at the Expiration Date Can an Investor Expect to Find