Which of the Following Would Tend to Decrease the Size

question 86

Multiple Choice

Which of the following would tend to decrease the size of the time value of the option?

• A)The price volatility of the underlying asset is high.
• B)The time to expiration of the contract is far away.
• C)The interest rate on U.S.Treasury bonds increases.
• D)The time to expiration of the options contract is near.

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