At 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.


A. equal to zero.

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

Business

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