SIE - Securities Industry Essentials Exam

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What is the extrinsic value of options at expiration?

The amount of the premium
A
The amount of the premium minus the strike price
B
zero
C
The intrinsic value
D

Explanations

Extrinsic value is time value. At expiration, there is no more time value left; only intrinsic value. The correct answer is zero.

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