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.

---

Definitions:

Transportation Service

Services that provide the movement of people or goods from one location to another, utilizing various modes such as trucks, ships, airplanes, or trains.

Logistics Cost Centers

Areas within a company's logistics operation that are responsible for specific expenses, helping in budgeting and financial tracking.

Least Cost Analysis

A method used to minimize costs of achieving a specific objective, commonly used in decision-making for choosing the most cost-effective option.

Short-Run Analysis

An examination of the performance or behavior of a firm or model over a short period, focusing on immediate costs and outcomes.