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Consider the Following Equation: Boption = BS

Question 30

Multiple Choice

Consider the following equation: boption = Consider the following equation: b<sub>option</sub> = b<sub>S</sub> + b<sub>B</sub> The term b<sub>B</sub> is A) always equal to zero since b<sub>B</sub> = 0. B) always positive since B is always positive. C) could be positive or negative depending on whether the option in question is a put or a call. D) always negative since B is always negative. bS + Consider the following equation: b<sub>option</sub> = b<sub>S</sub> + b<sub>B</sub> The term b<sub>B</sub> is A) always equal to zero since b<sub>B</sub> = 0. B) always positive since B is always positive. C) could be positive or negative depending on whether the option in question is a put or a call. D) always negative since B is always negative. bB
The term Consider the following equation: b<sub>option</sub> = b<sub>S</sub> + b<sub>B</sub> The term b<sub>B</sub> is A) always equal to zero since b<sub>B</sub> = 0. B) always positive since B is always positive. C) could be positive or negative depending on whether the option in question is a put or a call. D) always negative since B is always negative. bB is


A) always equal to zero since bB = 0.
B) always positive since B is always positive.
C) could be positive or negative depending on whether the option in question is a put or a call.
D) always negative since B is always negative.

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