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Management · Q656

Financial Management

Graduate and Post Graduate · Management · question 656

Q656

Greater value of option, larger span of time value is usually results in

A.
shorter call option
B.
longer call option
Answer
C.
longer put option
D.
shorter put option

Answer: Option B

Solution

Answer: Option B
Solution:
Greater value of option, larger span of time value is usually results in longer call option. A call option, often simply labeled a "call", is a financial contract between two parties, the buyer and the seller of this type of option.