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Basic Question 0 of 8

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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Colin Sampaleanu

Colin Sampaleanu

Learning Outcome Statements

explain hypothesis testing and its components, including statistical significance, Type I and Type II errors, and the power of a test

CFA® 2025 Level I Curriculum, Volume 1, Module 8.