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

---

Definitions:

Psychosexual Stage

Stages proposed by Freud detailing the sexual development and maturation process from childhood through adulthood.

Opposite-Sex Parent

A child's parent of the gender different from their own, often discussed in the context of developmental psychology.

Identifying

The process of recognizing and naming someone or something.

Basic Motivation

The fundamental drives and psychological needs that prompt an individual to take action or behave in certain ways.