21-1Copyright©2017McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducationChapter21TestBank-StaticStudent:___________________________________________________________________________MultipleChoiceQuestions1.Beforeexpiration,thetimevalueofanin-the-moneycalloptionisalwaysA.equaltozero.B.positive.C.negative.D.equaltothestockpriceminustheexerciseprice.E.Noneoftheoptionsarecorrect.2.Beforeexpiration,thetimevalueofanin-the-moneyputoptionisalwaysA.equaltozero.B.negative.C.positive.D.equaltothestockpriceminustheexerciseprice.E.Noneoftheoptionsarecorrect.3.Beforeexpiration,thetimevalueofanat-the-moneycalloptionisusuallyA.positive.B.equaltozero.C.negative.D.equaltothestockpriceminustheexerciseprice.E.Noneoftheoptionsarecorrect.4.Beforeexpiration,thetimevalueofanat-the-moneyputoptionisalwaysA.equaltozero.B.equaltothestockpriceminustheexerciseprice.C.negative.D.positive.E.Noneoftheoptionsarecorrect.5.Atexpiration,thetimevalueofanin-the-moneycalloptionisalwaysA.equaltozero.B.positive.C.negative.D.equaltothestockpriceminustheexerciseprice.E.Noneoftheoptionsarecorrect.6.Atexpiration,thetimevalueofanin-the-moneyputoptionisalwaysA.equaltozero.B.negative.C.positive.D.equaltothestockpriceminustheexerciseprice.E.Noneoftheoptionsarecorrect.21-2Copyright©2017McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation7.Atexpiration,thetimevalueofanat-the-moneycalloptionisalwaysA.positive.B.equaltozero.C.negative.D.equaltothestockpriceminustheexerciseprice.8.Atexpiration,thetimevalueofanat-the-moneyputoptionisalwaysA.equaltozero.B.equaltothestockpriceminustheexerciseprice.C.negative.D.positive.9.AcalloptionhasanintrinsicvalueofzeroiftheoptionisA.atthemoney.B.outofthemoney.C.inthemoney.D.atthemoneyandinthemoney.E.atthemoneyoroutofthemoney.10.AputoptionhasanintrinsicvalueofzeroiftheoptionisA.atthemoney.B.outofthemoney.C.inthemoney.D.atthemoneyandinthemoney.E.atthemoney...
