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Basic Question 0 of 6

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 am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes

Barnes

Learning Outcome Statements

compare the money-weighted and time-weighted rates of return and evaluate the performance of portfolios based on these measures

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