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:

Cultural Patterns

The shared behaviors, values, norms, and traditions that characterize a group of people or society.

Psychiatric Problems

Issues related to mental health that affect mood, thinking, and behavior, requiring professional diagnosis and treatment.

Challenges

Difficulties that require effort and determination to overcome.

Population

The total number of individuals or entities under consideration in a particular study or analysis, often within a specific area or group.