Q624
An excess of actual price of option over an exercise value of option is classified as
A.
time value options
AnswerB.
actual options
C.
estimated options
D.
optional pricing
Answer: Option A
Solution
Answer: Option A
Solution:
An excess of actual price of option over an exercise value of option is classified as time value options. In options trading, time value refers to the portion of an option's premium that is attributable to the amount of time remaining until the expiration of the option contract.