Describes time to expiration vs the value of a call option

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Problem 1: Which of the following correctly describes the relation between time to expiration and the value of a call option

A. as the time to expiration increases, the value of the call option should also increase
B. as the time to expiration increases, the value of the call option should decrease
C. the value of the call option will be independent of its time to expiration
D. as the time to expiration increases, the value of the call option will be higher than the value of its underlying securities

Reference no: EM132763285

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