What is the Time Value of an option that is expiring today?
Explanation
Time value decays to zero at expiration; the option is worth exactly its exercise value.
Other questions
Which component represents the value of an option if it were exercised immediately?
For a Call option, how is the intrinsic value calculated?
Calculate the intrinsic value of a Call option where the Spot price is 150 and the Strike price is 130.
If a Put option has a Strike Price of 50 and the underlying Spot Price is 55, what is its intrinsic value?
What is the relationship between Option Premium, Intrinsic Value, and Time Value?
A Call option has a Premium of 12, a Strike of 100, and a Spot price of 108. What is the Time Value?
When is a Call option considered 'In-the-money'?
When is a Put option considered 'Out-of-the-money'?
What happens to the price of a Call option if the volatility of the underlying asset increases?
How does an increase in the Risk-Free Rate (RFR) affect the value of a Put option?
What is the impact of an increase in the Strike Price on a Call option's value?
Consider a Put option with Strike = 200 and Spot = 180. The premium is 25. What is the Intrinsic Value?
If a Call option is At-the-money (ATM), what is its intrinsic value?
Which factor generally increases the value of both Call and Put options?
What is the effect of dividend payments on a Call option?
For a European Put option, under what condition can the Time Value be negative?
Calculate the Intrinsic Value for a Call if Spot = 50 and Strike = 60.
If Spot = 100, Strike = 90, and Call Premium = 15, is the option ITM, ATM, or OTM?
Which of the following describes the 'Time Value' of an option?
If a Call option has a premium of 5 and an intrinsic value of 0, what can be inferred?
How does Time to Maturity generally affect the value of a Call option?
A Put option has a Strike of 80 and a Premium of 2. The Spot price is 82. What is the Intrinsic Value?
If a Put option is ITM, which relationship holds true?
Which factor has an inverse (negative) relationship with the value of a Put option?
If the Spot Price is 100 and the Strike Price is 100, the option is classified as:
Calculate the Time Value if: Spot = 40, Strike = 35, Call Premium = 7.
What is the Intrinsic Value of a Put option with Spot = 200 and Strike = 150?
Which of the following increases the value of a Put option?
If a Call option is deeply Out-of-the-money, its Delta (sensitivity to price changes) is low. What is its Intrinsic Value?
The price of the option is also referred to as the:
Calculate the Intrinsic Value: Put Option, Spot = 90, Strike = 100.
What happens to the value of a Call option if the company declares a higher-than-expected dividend?
For a Call option, Intrinsic Value is typically:
Which option has an Intrinsic Value of zero?
If Spot = 60, Strike = 50, Call Premium = 12. What portion is Time Value?
Why might a deep ITM European Put have negative time value?
Identify the incorrect statement regarding option factors.
Which pair of factors has a positive correlation with Call Option value?
If a Call option is ITM (Spot 100, Strike 90), its Intrinsic Value is:
What is the lower bound for the price of an option (assuming non-negative premiums)?
A Put option is ATM. If the Spot price decreases, the option becomes:
How does an increase in dividends affect a Put option?
In the context of options, 'Exercise Value' is synonymous with:
If Spot = 100, Strike = 110, Call Premium = 5. What is the Intrinsic Value?
If Spot = 100, Strike = 110, Put Premium = 15. What is the Intrinsic Value?
Generally, for European options, increasing the time to maturity:
Which option is 'Out-of-the-money' if Spot = 50 and Strike = 45?
What happens to a Call option's value if the Risk-Free Rate decreases?
If a Put option has Intrinsic Value = 0 and Premium = 0, what is likely true?