Which of the Following Statements Is True? Consider Options Written

question 7

Multiple Choice

Which of the following statements is true? Consider options written on a non-dividend-paying stock.

• A) All American options have negative theta and positive gamma.
• B) American calls have negative theta and positive gamma, but American puts may sometimes have positive theta and negative gamma.
• C) All American options have negative theta and all American calls have positive gamma, but American puts may sometimes have negative gamma.
• D) All American options have positive gamma and American calls have negative theta, but American puts may sometimes have positive theta.

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Definitions:

Supply Chain

A system consisting of companies, individuals, processes, data, and assets engaged in the transportation of goods or services from the provider to the consumer.

Aggregate Planning

A process in operations management aiming to determine an optimal production plan to meet fluctuating demand in the medium term while minimizing costs.

Subcontracting

The practice of assigning part of the obligations and tasks under a contract to another party, often to specialize in particular tasks or save on costs.

Inventory

Describes the goods and materials that a business holds for the ultimate goal of resale or production.