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:

Self-Management

The ability of an individual to regulate their own emotions, behaviors, and thoughts to achieve personal goals or tasks.

Self-Responsibility

The practice of individuals taking ownership and being accountable for their actions and well-being.

Ethical Tone

The overall ethos of an organization or group that influences the ethical behavior of its members, often set by leadership.

Moral Values

Fundamental beliefs about what is right, wrong, good, or bad in human conduct, often influenced by societal norms and personal principles.