Which of the Following Statements Is True? Consider Options Written

question 21

Multiple Choice

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

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

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Definitions:

Firearms

Weapons, such as guns, designed to discharge projectiles (bullets, shells, etc.) at high speeds, typically used for self-defense, hunting, or as tools of warfare.

Mass Murder

The act of murdering a large number of people, typically at the same time or over a relatively short period of time, by a single person or a group.

Borderline Personality Disorder

A mental health disorder characterized by pervasive patterns of instability in interpersonal relationships, self-image, and emotions.

Avoidant Personality Disorder

A personality disorder characterized by consistent discomfort and restraint in social situations, overwhelming feelings of inadequacy, and extreme sensitivity to negative evaluation.