Holding everything else constant,a longer-term European put is always worth more than a shorter-term European put.

Question

Quizplus · Accepted Answer

The value of a European put option is not strictly increasing with time to maturity due to the effect of interest rates and dividends. While longer-term options have more time value, the impact of discounting and potential dividends can make a shorter-term put more valuable in certain circumstances.

Holding Everything Else Constant,a Longer-Term European Put Is Always Worth