Chapter 03 · Section 3.1

Option maturity

At maturity, the price of an option (call or put) is:

• a) the intrinsic value.
  Yes. At maturity all the components of the time value ( ie. time to maturity, interest rate and volatility of the underlying asset) no longer have an influence. Hence the intrinsic value is the only remaining component of the premium. Continue
  b) the time value.
  c) the price of the underlying asset.

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