Which of the Following Is Correct Regarding a Call Option

Multiple Choice

Which of the following is correct regarding a call option?

A) The intrinsic value of a call option is the greater of zero and (K- S) , the difference between the market price and the strike price.
B) The time value of an option reflects the probability that the future market price of the underlying instrument will not exceed the strike price.
C) The time value decreases with the length of time to expiration and the volatility of the underlying instrument (such as the share price) .
D) The time value is always positive until the option expires, so the total value of an unexpired option is always greater than the intrinsic value.