Which of the Following Statements Is True? Consider Options Written

question 6

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 negative theta.
• B)European options and American calls have negative theta,but American puts may have positive theta.
• C)European options have negative theta,but all American options may have positive or negative theta.
• D)Theta may be positive or negative for both American and European options.

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Definitions:

Shear Zone

A region of the Earth's crust where rocks have been significantly deformed due to shear stress.

Folded Metamorphic Rocks

Metamorphic rocks that have been subjected to significant pressure and heat, resulting in a folded appearance due to deformation.

Well-developed Cleavage

A property of minerals that allows them to break along flat, parallel surfaces with ease, often a result of their crystal structure.

Bedding

Layers of sediment or sedimentary rock laid down in natural processes within bodies of water or on the Earth's surface.