Before expiration, the time value of an in-the-money call option is always
A) equal to zero.
B) positive.
C) negative.
D) equal to the stock price minus the exercise price.
E) None of the options are correct.

Question

Quizplus · Accepted Answer

The difference between the actual option price and the intrinsic value is called the time value of the option. Time value is always positive before expiration.

Before Expiration, the Time Value of an In-The-Money Call Option