When the Time to Maturity Increases with All Else Remaining

question 17

Multiple Choice

When the time to maturity increases with all else remaining the same,which of the following is true?

• A) European options always increase in value
• B) The value of European options either stays the same or increases
• C) There is no effect on European option values
• D) European options are liable to increase or decrease in value

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Definitions:

Goal Shielding

The cognitive process of protecting one's focus on a specific goal by inhibiting attention to conflicting or distracting goals or information.

Self-Awareness

The conscious knowledge of one’s own character, feelings, motives, and desires, leading to a deeper understanding of oneself.

Temporal Discounting

A cognitive bias where people tend to value immediate rewards more highly than future rewards, often leading to short-sighted decision-making.

Suicide Notes

Written messages left by individuals who intend to take their own lives, often providing reasons for their action or expressing final thoughts.