Question: Other things equal, when an option first becomes available in the market, - its time value will be at its highest - its time value
Other things equal, when an option first becomes available in the market,
- its time value will be at its highest
- its time value will increase as the call approaches its expiration date
- the volatility of the stock is negatively related to the value of the call option
- if it is out of the money, it will have no time value
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