If the Time to Expiration of the Underlying Stock Decreases

question 40

Multiple Choice

If the time to expiration of the underlying stock decreases, then the:

• A) value of the put option will increase, but the value of the call option will decrease.
• B) value of the put option will decrease, but the value of the call option will increase.
• C) value of both the put and call option will increase.
• D) value of both the put and call option will decrease.
• E) value of both the put and call option will remain the same.

---

Definitions:

Schizophrenia

A mental health anomaly characterized by alterations in cognitive functions, sense perceptions, emotional states, and social engagements.

Obsessive-Compulsive Disorder

A mental health disorder characterized by unwanted repetitive thoughts (obsessions) and actions (compulsions).

Lithium Therapy

A treatment involving the administration of lithium, a mood-stabilizing drug, primarily used to treat bipolar disorder.

Bipolar Disorder

A disorder in mental wellness featuring acute mood swings, from manic or hypomanic episodes to depressive lows.