Which of the Following Is NOT Valid About the Time

question 34

Multiple Choice

Which of the following is NOT valid about the time decay of European put and call options with the same strike and maturity?

• A)The time decay is measured in dollars per unit time.
• B)The call decays at the same rate as the put.
• C)The call decays faster than the put.
• D)The difference between the time decay of decay of the call and put depends on the moneyness of the options.

---

Definitions:

Strategy Map

A visual tool that illustrates how an organization plans to achieve its strategic objectives through a cause-and-effect relationship among various components.

Strategic Initiative

A planned effort undertaken by an organization to achieve a major goal or objective, often involving significant resources and change.

Balanced Scorecard

A strategic planning and management system used to align business activities to the vision and strategy of the organization by monitoring performance against strategic goals.

Strategic Objective

Long-term goals that help convert a business's stated vision into specific performance targets.