In the Black-Scholes Option Pricing Model, an Increase in Time

question 84

Multiple Choice

In the Black-Scholes option pricing model, an increase in time to expiration (T) will cause

• A) An increase in call value and an increase in put value
• B) An increase in call value and a decrease in put value
• C) An decrease in call value and an increase in put value
• D) An decrease in call value and a decrease in put value
• E) An increase in call value and an increase or decrease in put value

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