Option premiums deteriorate at an/a __________ as they approach expiration.
A) increasing rate
B) proportional
C) decreasing rate
D) less than proportional rate

Name: Option premiums deteriorate at an/a __________ as they approach expiration. A) increasing rate B) proportional C) decreasing rate D) less than proportional rate
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Question

Quizplus · Accepted Answer

Option premiums deteriorate at an increasing rate as they approach expiration due to the acceleration of time decay, also known as theta decay.

Option Premiums Deteriorate at An/a __________ as They Approach Expiration