Option Premiums Deteriorate at An/a __________ as They Approach Expiration

question 71

Multiple Choice

Option premiums deteriorate at an/a __________ as they approach expiration.

• A) increasing rate
• B) proportional
• C) decreasing rate
• D) less than proportional rate

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Definitions:

Title Insurance

Insurance that protects real estate owners and lenders against any property loss or damage they might experience because of liens, encumbrances, or defects in the title to the property.

Title Search

A check of public records to confirm a property's legal ownership and identify any claims or liens against it.

Encumbrances

A legal term for a claim, lien, charge, or liability attached to and binding real property.

Title Search

The examination of public records to determine and confirm a property's legal ownership and find out what claims or liens are on the property.