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- 2013-8-22
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For two European put options that differ only in their time to expiration, which of the following is most accurate? The longer-term option:
A) can be worth less than the shorter-term option.
B) can be worth more than the shorter-term option.
C) can be worth at least as much as the shorter-term option.
Very tricky,(I also selected C) The answer is A, it could be all of them and most accurate is A because european options can not be excercised until the contact expiration date. |
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