Investor a Bought a Call Option That Expires in 6

question 56

Multiple Choice

Investor A bought a call option that expires in 6 months.Investor B wrote a put option with a 9 month maturity.All else equal as the time to expiration approaches the value of Investor A's position will _______ and the value of Investor B's position will _______.

• A) increase; increase
• B) increase; decrease
• C) decrease; increase
• D) decrease; decrease

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Definitions:

Brown Tree Frogs

A species of frog known for its distinctive brown color and ability to thrive in a variety of habitats, including urban areas.

Green Tree Frogs

A common name for various species of arboreal frogs known for their bright green color, often found in humid, forested areas.

Population

The total number of individuals of a specific species living within a particular geographical area.

Ecology

The branch of biology that studies the interactions among organisms and their biophysical environment, including both biotic and abiotic components.