Which of the Following Statements Is True? Consider Options Written

question 5

Multiple Choice

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

• A)All European options have negative theta and positive gamma.
• B)European calls have negative theta and positive gamma,but European puts may sometimes have positive theta and negative gamma.
• C)All European options have negative theta and all European calls have positive gamma,but European puts may sometimes have negative gamma.
• D)All European options have positive gamma and European calls have negative theta,but European puts may sometimes have positive theta.

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Definitions:

Revaluation Method

An accounting technique that involves adjusting the book value of an asset to reflect its current fair market value.

Intangible

Assets that lack physical substance but have value due to their intellectual property or other non-physical qualities, such as patents, trademarks, and goodwill.

Amortisation

The systematic allocation of the depreciable amount of an intangible asset over its useful life.

Impairment

A reduction in the recoverable value of an asset below its carrying amount on the balance sheet, leading to a write-down of its value.