If the Time to Expire of an Option Increases

question 76

Multiple Choice

If the time to expire of an option increases:

• A) the value of a call option will increase,but a put option will decrease.
• B) the value of a call option will decrease,but a put option will increase.
• C) the value of a call option will decrease,and a put option will decrease.
• D) the value of a call option will increase,and a put option will increase.

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Definitions:

Schachter And Singer Theory

A psychological theory suggesting that emotions are determined by physiological arousal and cognitive labeling of the arousal based on environmental cues.

Demand Characteristics

Cues or signals in an experimental setting that might influence participants' behavior or responses, potentially affecting the validity of the experiment.

Experience Of Emotion

involves the complex process of personally undergoing feelings, which is influenced by cognitive evaluations, physiological changes, and social-contextual factors.

Basic Emotions

Refers to a set of universally recognized primary emotions such as happiness, sadness, fear, disgust, surprise, and anger.