Which of the following statements is true? Consider options written on a non-dividend-paying stock.
A) All American options have negative theta and positive gamma.
B) American calls have negative theta and positive gamma, but American puts may sometimes have positive theta and negative gamma.
C) All American options have negative theta and all American calls have positive gamma, but American puts may sometimes have negative gamma.
D) All American options have positive gamma and American calls have negative theta, but American puts may sometimes have positive theta.
Correct Answer:
Verified
Q1: The current price of a call is
Q3: You hold a portfolio of a long
Q4: The delta of a call option is
Q5: The current stock price is $50,
Q6: You hold a portfolio of a long
Q7: The delta of a call option is
Q8: Which of the following statements is true?
Q9: Which of the following statements is true?
Q10: You are short a put on
Q11: The delta of an option measures, approximately,
A)
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