Which of the following statement is true?
The extrinsic value of call options is highest when it is at the money
The extrinsic value of call options is highest when it is out of the money
The extrinsic value of call options is highest when it is in the money
The extrinsic value of call options is inversely proportionate to its intrinsic value
(A) The extrinsic value of call options is highest when it is at the money
Explanation: