Which of the Following Statements Are Correct

question 72

Multiple Choice

Which of the following statements are correct?
I.Increasing the time to maturity may not increase the value of a European put.
II.Vega measures the sensitivity of an option's value to the passage of time.
III.Call options tend to be more sensitive to the passage of time than are put options.
IV.An increase in time decreases the value of a call option.

• A)I and III only
• B)II and IV only
• C)II, III, and IV only
• D)I, III, and IV only
• E)I, II, III, and IV

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Definitions:

Athletes

Individuals who are skilled in physical exercise or sports, often participating in competitive events.

Game

A structured form of play, usually undertaken for entertainment or fun, and sometimes used as an educational tool.

TOTE

The self-regulation feedback loop of Test, Operate, Test, Exit.

Evaluate

To assess or examine something in order to understand its value, importance, or condition, often leading to a judgment.