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Investor A bought a call option that expires in 6 months. Investor B wrote a put option with a 9-month maturity. All else equal, as the time to expiration approaches, the value of investor A's position will ________ and the value of investor B's position will ________.
Average Tax Rate
The percentage of the total income that is paid as taxes, calculated by dividing the total amount of taxes paid by the taxpayer's total income.
Personal Income
The total amount of income received by an individual or household from all sources before taxes and deductions.
Marginal Tax Rate
The rate at which the last dollar of a person's income is taxed.
Personal Income
The total amount of income earned by individuals, including wages, salaries, investments, and other sources before taxes.
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