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Basic Question 0 of 5

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 used your notes and passed ... highly recommended!
Lauren

Lauren

Learning Outcome Statements

describe the assumptions concerning the evolution of spot rates in relation to forward rates implicit in active bond portfolio management;

describe the strategy of rolling down the yield curve;

CFA® 2025 Level II Curriculum, Volume 4, Module 26.