Which of the Following Statements Is True

question 17

Multiple Choice

Which of the following statements is true?

• A) For both calls and puts an increase in the exercise price will cause an increase in the option price.
• B) For both calls and puts an increase in the time to expiration will cause an increase in the option price.
• C) For calls, but not for puts, an increase in the time to expiration will cause an increase in the option price.
• D) For puts, but not for calls, an increase in the time to expiration will cause an increase in the option price.

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Definitions:

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