SIE practice questionmediumOptions Time Value
If a put option is 'at the money,' what is its intrinsic value?
- AIts time value only
- BIts premium value
- CIts strike price
- D$0✓ Correct answer
Explanation
Why D — $0
An 'at the money' option has no intrinsic value; only time value remains in the premium. Strike price (C) and premium (B) are not intrinsic value.
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