Question $4(1$ point$)$

Which of the following statements is$/$are correct with respect to the intrinsic value of an option?

The intrinsic value of a call option is the stock price minus the strike price The intrinsic value of an option is zero if the option is out of the money

All of the answers are correct

The intrinsic value is equal to the pay$-$off if the call option is exercised

Question $5(1$ point$)$

Which if the following statements about the time value of an option is$/$are correct?

the time value at the expiration date is zero

the longer the time to maturity of an option the higher the time value

All of the answers are correct

The price of the underlying asset can potentially move further into the money between today and maturity