When the Time to Maturity Increases with All Else Remaining

question 17

Multiple Choice

When the time to maturity increases with all else remaining the same,which of the following is true?

• A) European options always increase in value
• B) The value of European options either stays the same or increases
• C) There is no effect on European option values
• D) European options are liable to increase or decrease in value

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Definitions:

Mass Media

Various forms of communication, such as television, radio, newspapers, and the internet, that reach a large audience.

Entertainment

Activities designed to provide pleasure, enjoyment, or amusement to an audience, such as movies, music, or sports.

Tension

A state of mental or emotional strain or suspense, often resulting from conflicting or competing forces, interests, or wants.

Relaxation

The process or activity of reducing tension and stress, often through leisure activities, to promote physical and mental well-being.