I have a basic question for which I feel like I should have found the answer by googling it, but I didn't get a definitive answer, so here I am:
Can the time value for a plain vanilla (European) option be negative? I've read it can be (without an satisfactory explanation), while my professor said it cannot, not even for deep-in-the-money options and now I'm confused. Could someone please explain this to me?
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