At expiration, the time value of an at-the-money put option is always

A) equal to zero.
B) equal to the stock price minus the exercise price.
C) negative.
D) positive.

Time Value

The concept that money available at the present time is worth more than the identical sum in the future due to its potential earning capacity.

At-The-Money

At-The-Money describes an option where the strike price is identical to the current price of the underlying asset.

Put Option

A financial contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time.