The time value of a European option
A)is always positive for an out-of-the-money option
B)is always positive for an in-the-money option
C)is always positive for an at-the-money option
D)decreases with the time that remains until the option expires

Question

Quizplus · Accepted Answer

The Answer of The time value of a European option
A)is always positive for an out-of-the-money option
B)is always positive for an in-the-money option
C)is always positive for an at-the-money option
D)decreases with the time that remains until the option expires

The Time Value of a European Option