Which of the Following Is NOT True Regarding Options

question 43

Multiple Choice

Which of the following is NOT true regarding options?

• A)As time passes, the option's price line approaches its intrinsic value.
• B)The premium on an 'at-the-money' option is all time value.
• C)All else being equal, you would prefer a call option with a lower exercise price.
• D)The seller of an option must post a margin deposit.
• E)Options must be held to expiration.

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Definitions:

Display Rules

Rules that are learned through socialization and that indicate what emotions are suitable in certain situations.

Emotional Conformity

The act of aligning one's emotional responses with those of a group, often to fit in or be accepted.

Negative Emotions

Feelings that are considered detrimental to one’s well-being, such as sadness, anger, and fear.

Levels of Guilt

Refers to the varying intensities or stages of guilt that individuals can experience, often contingent on their moral or ethical beliefs.