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1. Which one of the following statements is correct?

A. increasing the time to maturity may not increase the value of a put option.

B. Exercising an American option is always more valuable than selling the option.

C. an increase in time to maturity decreases the value of a call option.

D. Call options tend to be less sensitive to the passage of time than are put options.

2. Which one of the following terms applies to the value of an option on its expiration date?

A. Deadline price

B. Time value

C. Intrinsic value

D. Strike price

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92869287

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