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Consider the Following Equation

Question 24

Multiple Choice

Consider the following equation:
Boption = Consider the following equation: B<sub>optio</sub><sub>n</sub> = B<sub>S</sub> + B<sub>B</sub> The term B<sub>B</sub> is: A) always equal to zero since b<sub>B</sub> = 0. B) always positive since B is always positive. C) could be positive or negative depending on whether the option in question is a put or a call. D) always negative since B is always negative.
BS + Consider the following equation: B<sub>optio</sub><sub>n</sub> = B<sub>S</sub> + B<sub>B</sub> The term B<sub>B</sub> is: A) always equal to zero since b<sub>B</sub> = 0. B) always positive since B is always positive. C) could be positive or negative depending on whether the option in question is a put or a call. D) always negative since B is always negative.
BB
The term Consider the following equation: B<sub>optio</sub><sub>n</sub> = B<sub>S</sub> + B<sub>B</sub> The term B<sub>B</sub> is: A) always equal to zero since b<sub>B</sub> = 0. B) always positive since B is always positive. C) could be positive or negative depending on whether the option in question is a put or a call. D) always negative since B is always negative.
BB is:


A) always equal to zero since bB = 0.
B) always positive since B is always positive.
C) could be positive or negative depending on whether the option in question is a put or a call.
D) always negative since B is always negative.

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