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Time Value Is Greatest (All Else Being Equal)for Options That

Question 93

Multiple Choice

Time value is greatest (all else being equal) for options that are at-the-money because:


A) a price increase may not deliver intrinsic value for out-of-the-money call options
B) in-the-money options can lose intrinsic value
C) at-the-money options best display the asymmetric payoff (win-but-not-lose) that makes options valuable
D) a price fall may not deliver intrinsic value for out-of-the-money put options.
E) All of these.

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