Prior to expiration,

A) the intrinsic value of a call option is greater than its actual value.
B) the intrinsic value of a call option is always positive.
C) the actual value of a call option is greater than the intrinsic value.
D) the intrinsic value of a call option is always greater than its time value.

Intrinsic Value

Intrinsic value is the perceived or calculated true value of an asset, investment, or company, based on underlying perceptions of its true worth rather than current market value or price.

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a specified price within a specific time period.

Actual Value

The actual value is the genuine, intrinsic value of an asset, without any speculation or market influence; often considered the most accurate value of an asset.