The value of a call option increases as time to expiration increases, all else constant.

Name: The value of a call option increases as time to expiration increases, all else constant.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is because the longer the time to expiration, the more opportunities there are for the underlying asset to increase in price and the greater the likelihood that the option will end up in-the-money. This increased probability of a favorable outcome is reflected in the higher value of the call option.

The Value of a Call Option Increases as Time to Expiration