An option’s intrinsic value is equal to the amount the option is:()
A. out of the money, and the time value is the market value minus the intrinsic value.
B. in the money, and the time value is the intrinsic value minus the market value.
C. in the money, and the time value is the market value minus the intrinsic value.
参考答案:C
解析:
Intrinsic value is the amount the option is in the money. In effect it is the value that would be realized if the option were at expiration. Prior to expiration, the option’s market value will normally exceed its intrinsic value. The difference between market value and intrinsic value is called time value.