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Basic Question 0 of 2
For a call option, ______
II. theta is generally negative.
III. vega is always negative.
I. rho is always negative.
II. theta is generally negative.
III. vega is always negative.
User Contributed Comments 2
| User | Comment |
|---|---|
| ramdabom | I thought Theta relates to time. How can it be negative? |
| cowboy | @ramdabom: yes it relates to time. as time goes by an option decreases in value. |
I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
explain how deferred tax liabilities and assets are created and the factors that determine how a company's deferred tax liabilities and assets should be treated for the purposes of financial analysis
CFA® 2025 Level I Curriculum, Volume 3, Module 9.