For Options That Are At-The-Money, Which of the Following Statements

question 33

Multiple Choice

For options that are at-the-money, which of the following statements is typically valid as maturity nears?

• A) Gamma increases as does theta.
• B) Gamma increases and theta decreases.
• C) Gamma decreases and theta increases.
• D) Gamma and theta both decrease.

---

Definitions:

McCulloch V. Maryland

A landmark Supreme Court case in 1819 that established the federal government's implied powers over the states.

Federal Government

The central government of a federation, which holds the supreme governmental authority over a country or political unit, distinct from regional or state governments.

U.S. Trade Relations

The economic interactions and agreements between the United States and other countries regarding the exchange of goods and services.

Chinese Ports

Harbors along the coast of China that serve as important centers for maritime trade and transportation.