The Value of a Call Increases When the Time to Expiration

question 358

True/False

The value of a call increases when the time to expiration increases.

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Definitions:

Statement of Cash Flows

A summarized record of all the cash coming into a company from operations and investment sources, and all the cash spent on business activities and investments within a certain period.

Cash Dividends

Payments made by a corporation to its shareholder members, usually derived from profits earned.

Stockholders

Individuals or entities that own shares of stock in a corporation, giving them ownership interest.

Dividends Payable

A liability on a company's balance sheet that represents the amount of dividends that have been declared but not yet paid to shareholders.