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:

Citizenship

The status of being a citizen, entailing certain rights, duties, and privileges in a particular nation or state.

Religion Clauses

Provisions in the First Amendment of the U.S. Constitution that guarantee freedom of religion, separated into the Establishment Clause and the Free Exercise Clause.

First Amendment

The first amendment to the United States Constitution, guaranteeing freedoms concerning religion, expression, assembly, and the right to petition.