Which One of the Following Statements Is Correct

question 64

Multiple Choice

Which one of the following statements is correct?

• A) Increasing the time to maturity may not increase the value of a European put.
• B) An increase in time decreases the value of a call option.
• C) Exercising an American option is always more valuable than selling the option.
• D) Call options tend to be less sensitive to the passage of time than are put options.
• E) Vega measures the sensitivity of an option's value to the passage of time.

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