Option Values Increase with the Length of Time to Maturity

question 13

True/False

Option values increase with the length of time to maturity. The expected change in the option premium from a small change in the time to expiration is termed delta.

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Definitions:

CCC Bond Angles

CCC bond angles refer to the geometric angles between three carbon atoms in a molecular structure, important in determining the shape and properties of molecules.

Resonance Hybrid

A composite representation of a molecule that cannot be depicted accurately by a single structural formula, illustrating electron delocalization.

Aromatic

Describes organic compounds that contain one or more planar rings of atoms with delocalized pi electrons, following Huckel's rule.

Nodal Planes

Imaginary planes in an atom or molecule where the probability of finding an electron is zero, often associated with molecular orbitals.