It is a given that at maturity $($T$)$ the intrinsic value of a Call option $=$ MAX $[0,($ST $$ X$)],$ where ST $=$ the stock price at maturity; and X $=$ the exercise price. However, why is the Call$$s market value greater than the intrinsic value before maturity? That is$,$ why is Call Value $>($ST $-$ X$)$ before its maturity date?

Group of answer choices

The time left before maturity adds value to the Call because the longer the time to maturity the greater the chance the stock will trade higher than the exercise price.

Since investors want to maximize their profits they are willing to pay more than intrinsic value

This is possible because Call options trade in very inefficient markets, and this would just be an example of irrational pricing.

All of the above are correct

If the market is efficient and in equilibrium, the market value of a Call option should never be greater than its intrinsic value.