The longer the time to expiration, the greater the value of a call option.

Name: The longer the time to expiration, the greater the value of a call option.
Brand: Quizplus
Rating: 4.7 (17 reviews)

Question

Quizplus · Accepted Answer

This is because a longer time to expiration increases the likelihood that the underlying asset will move in the desired direction, allowing the option buyer to potentially earn a profit. Additionally, a longer time to expiration provides more time for the underlying asset to reach the strike price, which can also increase the value of the option.

The Longer the Time to Expiration, the Greater the Value