Before expiration,the time value of an at the money call option is always
A)positive.
B)equal to zero.
C)negative.
D)equal to the stock price minus the exercise price.
E)none of the above.

Question

Quizplus · Accepted Answer

The time value of an at-the-money call option is always positive before expiration because there is potential for the option to become profitable as the stock price can move in favor of the option holder.

Before Expiration,the Time Value of an at the Money Call