The Shorter the Time to the Expiration Date for a Currency

question 32

Multiple Choice

The shorter the time to the expiration date for a currency, the ____ will be the premium of a call option, and the ____ will be the premium of a put option, other things equal.

• A) greater; greater
• B) greater; lower
• C) lower; lower
• D) lower; greater

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Definitions:

Ethical Theory

The branch of philosophy that involves systematizing, defending, and recommending concepts of right and wrong conduct.

Virtue Ethics

The ethical system which proposes that a decision is ethical when it promotes positive character traits such as honesty, courage, or fairness.

Categorical Imperatives

Fundamental principles proposed by Immanuel Kant that require unconditional adherence without consideration of personal desires or consequences.

The Good Life

A concept describing a life filled with happiness, well-being, and prosperity, often including moral and ethical richness.