Question: Two components that make up option value are intrinsic value and time value. Explain why the intrinsic value of an option is always non-negative, even

Two components that make up option value are intrinsic value and time value. Explain why the intrinsic value of an option is always non-negative, even for out of the money option. Explain why the time value of an option is positively correlated with its time to maturity.

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