Which One of the Following Statements Is Correct Concerning Option

question 261

Multiple Choice

Which one of the following statements is correct concerning option values?

• A) The value of a call increases as the time to expiration decreases.
• B) The value of a call increases when the strike price increases.
• C) The value of a put is greater if it is a European put rather than an American put.
• D) The value of a March 30 put on a stock tends to move inversely to the value of the March 30 call on the same stock.
• E) The value of a put increases as the strike price decreases.

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