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.

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