单选题

Which of the following statements most closely relates to the concept of moneyness?

A、 The sum of money the option buyer pays the seller is called the premium.
B、 Both call and put option prices decline as the time to expiration becomes shorter.
C、 One would never exercise a call option if the price of the underlying is below the strike price.

【正确答案】 C

【答案解析】

C is correct because only an in-the-money option would be exercised. Moneyness describes the relationship between the price of the underlying and an option's exercise price.