Which of the Following Is True for a Long Position

question 14

Multiple Choice

Which of the following is true for a long position in an option

• A) Both gamma and vega are negative
• B) Gamma is negative and vega is positive
• C) Gamma is positive and vega is negative
• D) Both gamma and vega are positive

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Definitions:

Fiscal Period

A specific time period used for accounting purposes and preparing financial statements, usually twelve months.

Accumulated Depreciation

The cumulative amount of depreciation cost recorded for an asset from the time it was first utilized.

Fixed Asset Account

An account that tracks the purchase, depreciation, and disposal of long-term assets used in the production of goods or services.

Book Value

The net value of a company's assets minus its liabilities, as reported on the balance sheet, often used to assess a company's worth.