The Longer the Time to Expiration, the Greater the Value

question 94

True/False

The longer the time to expiration, the greater the value of a call option.

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Definitions:

Incentives

Rewards or motivations provided to encourage specific actions or behaviors.

Rewards

Positive reinforcement given to encourage certain behaviors or achievements.

Extrinsic Motivation

The drive to perform or engage in activities due to external rewards or pressures rather than personal satisfaction.

Intrinsically Motivated

Being driven by internal rewards, such as personal satisfaction or the joy of doing something, rather than by external incentives.