amqata

CareerThruCFA Wrote:
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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.

Sorry I still don't get your explanation. Mind elaborating further?

Thanks.