Q606
Difference between intrinsic value of option and price of option is classified as
A.
spot value of option
B.
time value of US treasury
C.
time value of option
AnswerD.
time value of bond
Answer: Option C
Solution
Answer: Option C
Solution:
Difference between intrinsic value of option and price of option is classified as time value of option. 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.