The ________________________, the greater the chance of the option becoming _____________________.
A) shorter the time to expiration, in-the-money
B) longer the time to expiration, in-the-money
C) less the volatility, in-the-money
D) longer the time to expiration, out of the money

Question

Quizplus · Accepted Answer

The longer the time to expiration of an option, the greater the chance it has to move into the money because there is more time for the underlying asset to move in a favorable direction.

The ________________________, the Greater the Chance of the Option Becoming