Greater value of option, larger span of time value is usually results in__________?
Correct answer: C. Longer call option
- A. Shorter call option
- B. Longer put option
- C. Longer call option
- D. Shorter put option
Explanation
The time value of an option generally increases when more time remains before expiration, because there is a greater chance of a favourable price movement. The listed answer describes this as a longer call option.
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