The longer the time until expiration of a call option,the greater the value of the option.

Question

Quizplus · Accepted Answer

This is because a longer expiration period allows more time for the underlying asset's price to potentially rise, increasing the likelihood that the option will be profitable. Additionally, more time until expiration also means less risk of the option expiring worthless. Therefore, the value of the option increases as the time until expiration increases.

The Longer the Time Until Expiration of a Call Option,the