1 at expiration the time value of an optiona is equal to, Ask an Expert

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1. At expiration, the time value of an option:

A. is equal to the intrinsic value.

B. is greater than the intrinsic value.

C. is zero.

D. is less than the intrinsic value.

2. If the price of an underlying asset has a standard deviation of zero:

A. options for this asset would likely not exist.

B. option for this asset would be highly valued.

C. the intrinsic value of options for this asset would equal the asset's price.

D. options for this asset would have a time value of the option equal to the price of the asset.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91604291

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