At expiration, the time value of an in-the-money call option is always

A) equal to zero.
B) positive.
C) negative.
D) equal to the stock price minus the exercise price.
E) None of the options are correct.

Time Value

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

In-The-Money

A term describing an option contract that has intrinsic value, meaning it would be profitable to exercise the option immediately.

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy a specified quantity of an asset at a predetermined price within a specified time period.