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

---

Definitions:

Implemented

Executed or carried out a plan, decision, or method, making it active or effective.

Inoculate

in a non-medical context, means to protect or prepare someone in advance against adverse conditions or criticism.

Resilient

The ability to quickly recover from difficulties; toughness and adaptability in the face of adversity.

Vulnerable

Exposed to the possibility of being attacked or harmed, either physically or emotionally.