Chapter 03 · Section 3.1
The Time Value of an Option
At maturity, the time value of an option (put or call) is equal to:
a) the intrinsic value.
b) zero.
c) the premium.
d) None of the above.
There are three factors which have an influence on the time value: the time to maturity, the interest rate and the volatility of the underlying asset. Think whether those factors still have an influence on the premium at maturity ...