If the Time to Expire of an Option Increases

question 76

Multiple Choice

If the time to expire of an option increases:

• A) the value of a call option will increase,but a put option will decrease.
• B) the value of a call option will decrease,but a put option will increase.
• C) the value of a call option will decrease,and a put option will decrease.
• D) the value of a call option will increase,and a put option will increase.

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Definitions:

Complexity

The state of having multiple interconnected parts, which can make a system or problem difficult to understand or solve.

Project Plan

A formal, approved document outlining how the project will be executed, monitored, and controlled, including scope, objectives, and timelines.

Knowledge And Skills

The theoretical understanding (knowledge) and practical abilities (skills) that individuals possess, enabling them to perform tasks effectively.

Goals

Goals are specific, measurable targets that individuals or organizations aim to achieve within a designated timeframe.