Which of the Following Statements Is True? Consider Options Written

question 10

Multiple Choice

Which of the following statements is true? Consider options written on a non-dividend-paying stock.

• A)All European and American options have positive gamma.
• B)European options and American calls have positive gamma,but American puts may have negative gamma.
• C)European options have positive gamma,but American options may have positive or negative gamma.
• D)Gamma may be positive or negative for both American and European options.

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