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:

Pay Raises

an increase in an employee's salary or wages, often given to recognize performance or adjust for market conditions.

Special Assignments

tasks or projects assigned to employees that are outside their regular job responsibilities, often to address specific needs or goals.

Zero Sum Game

A zero-sum game is a situation in competitive settings where one party's gain is exactly balanced by the losses of other participants.

Person's Gain

Relates to the benefits or advancements a person realizes from a certain action or situation.