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.

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Definitions:

Trial Close

A sales technique where the seller asks a prospective buyer for their opinion or a minor decision regarding the sale, used to gauge interest or objections early.

Questions

Inquiries made to gather information, clarify doubts, or engage in a conversation, critical in sales, research, and daily communication.

Angular Washing Machines

Washing machines designed with geometric or angular aesthetics, possibly to fit specific spaces or for modern design preferences. However, this term is not commonly used in a standard context; washing machines are usually not categorized by angularity.

FAB

Features, Advantages, and Benefits; a sales model that emphasizes communicating not just the features of a product, but also its advantages over other options and the benefits it offers to the consumer.