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 delta of a call option is
Q2: The current price of a call is
Q3: You hold a portfolio of a long
Q5: You hold a straddle on a stock
Q6: A stock is trading at $80.You
Q7: The gamma of an option is
A)The dollar
Q8: Which of the following statements is true?
Q9: The delta of a call option is
Q10: You hold a straddle on a stock
Q11: The current stock price is $50,and
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