Question

Which one of the following statements is true?
A. A call with a strike price of $25 and a stock price of $23 has positive intrinsic value.
B. A European style option is more valuable than an American style option.
C. An American style out-of-the-money call option can have a positive value.
D. A $40 put option has more intrinsic value than a $50 put option on the same underlying asset.
E. The time value of an option is equal to the intrinsic value minus the option premium.

Answer

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