Value of an option at expiration is ALWAYS its intrinsic value. True or False

[childofprodigy]

Considering the fact that the extrinsic value of an option is composed of volatility, time value, etc ALL which have zero impact by the time the option reaches expiration date, it must be the case that by the price of an option by the time expiration is reached is equal to the difference between the underlying stock price and the strike price.

Did I get this right, or is there something wrong with this reasoning?

 

[QuestOptions]

correct...

at expiration the option will only have it's real value (intrinsic).

So if you are long the $100 call and the options expire when the stock is at $100.

The option will expire worthless (100-100)= 0

ATM options & OTM options do not have any real value (intrinsic value) at expiration.