10. Which of the following is a true statement? A. The actual value of a call op

Question

10. Which of the following is a true statement? A. The actual value of a call option is greater than its intrinsic value prior to expiration B. The intrinsic value of a call option is always greater than its time value prior to expiration C. The intrinsic value of a call option is always positive prior to expiration D. The intrinsic value of a call option is greater than its actual value prior to expiration 10. Which of the following is a true statement? A. The actual value of a call option is greater than its intrinsic value prior to expiration B. The intrinsic value of a call option is always greater than its time value prior to expiration C. The intrinsic value of a call option is always positive prior to expiration D. The intrinsic value of a call option is greater than its actual value prior to expiration

Explanation / Answer

A. True Prior to expiration, any option will be selling for a positive price, thus the actual value is greater than the intrinsic value.

B. False

C. False

D. False

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