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Basic Question 0 of 16

For a call option, ______

I. rho is always negative.
II. theta is generally negative.
III. vega is always negative.
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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.
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

Learning Outcome Statements

compare positions an investor can take in an asset

calculate and interpret the leverage ratio, the rate of return on a margin transaction, and the security price at which the investor would receive a margin call

CFA® 2025 Level I Curriculum, Volume 3, Module 1.