The Majority of the Option Premium Is Lost in the Final

question 42

True/False

The majority of the option premium is lost in the final days prior to expiration.

---

Definitions:

Inflows of Money

The movement of cash or cash equivalents into a place, organization, or financial instrument.

Positive Entry

The introduction of new firms into a market, increasing competition and potentially leading to innovation and lower prices for consumers.

Current Account Entry

An item in the balance of payments that includes all imports and exports of goods and services, along with income received from or paid to foreign countries.

Current Account

A component of a country's balance of payments that encompasses the trade balance, net primary income, and secondary income.