SIE practice questionhardTime value
Which option will have the greatest time value, all else equal?
- AAn at-the-money option✓ Correct answer
- BA deep in-the-money option
- CA deep out-of-the-money option
- DAn option near expiration
Explanation
Why A — An at-the-money option
At-the-money options have the highest time value as price can swing either way. Deep ITM/OTM or near expiration options have little time value.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Options questions