A. spot value of option
B. time value of US treasury
C. time value of option
D. time value of bond
✅ The correct answer is option C.
Difference between intrinsic value of option and price of option is classified as time value of option. Time value refers to the portion of an option’s premium that is attributable to the amount of time remaining until the expiration of the option contract.
Difference between intrinsic value of option and price of option is classified as time value of option. Time value refers to the portion of an option’s premium that is attributable to the amount of time remaining until the expiration of the option contract.