High School
SAT
SAT Elite 1500
SAT Tutoring
ACT
ACT Elite 33
ACT Tutoring
University
MCAT
MCAT Elite 515
Med-School Admissions
Pre-Med Tutoring
Pre-Med Plus
LSAT
LSAT Elite 170
LSAT Self-Paced
LSAT Tutoring
DAT
DAT Elite
DAT Tutoring
Log in
Get Started for Free
Question 1 Which of the following best describes the reason an option's value d…
Related Topics
Wize University Introduction to Finance Textbook > Options
Option Premium
5 Activities
Question 1
Which of the following best describes the reason an option's value decreases as it approaches expiration?
A) The intrinsic value of the option diminishes because the holder has less time to use it.
B) The time value of the option diminishes because the writer has less time to use it.
C) The intrinsic value of the option diminishes because the writer has less time to use it.
D) The time value of the option diminishes because the holder has less time to use it.
I don't know
Check Submission
More Option Premium Questions:
Which of the following is not a realistic scenario when the underlying asset is trading at $55?
An increase in which of the following will increase the value of a put option?