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Basic Question 0 of 10

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

describe characteristics of perfect competition, monopolistic competition, oligopoly, and pure monopoly

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