Which of the Following Would Tend to Decrease the Size

question 77

Multiple Choice

Which of the following would tend to decrease the size of the time value of the option?

• A) The price volatility of the underlying asset is high.
• B) The time to expiration of the contract is far away.
• C) The underlying price of the asset approaches the strike price.
• D) The time to expiration of the options contract is near.

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Definitions:

The Self

Consists of one’s ideas and attitudes about who one is.

Role

A set of expected behaviors, rights, obligations, and norms associated with a social position or status.

Status

A term referring to the relative social, professional, or other standing of someone or something.

Superego

In psychoanalytic theory, the part of the personality that acts as a moral center, imposing ethical standards and social conformity.