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

---

Definitions:

Ownership

A legal right to possess, use, control, and dispose of an asset or property.

Minority Active Equity Investments

Investments in which a company has a small, non-controlling stake but is still actively involved in the management or operations of the investee company.

Equity Method

An accounting technique used by companies to record investments in other companies, where the investment is represented as an asset and changes in the investment's value are reflected in the investor's income.

Held-To-Maturity Debt Investments

Debt securities purchased with the intent and ability to hold until their maturity date.