Multiple Choice
Which of the following statements is true? Consider options written on a non-dividend-paying stock.
A) All American options have negative theta and positive gamma.
B) American calls have negative theta and positive gamma, but American puts may sometimes have positive theta and negative gamma.
C) All American options have negative theta and all American calls have positive gamma, but American puts may sometimes have negative gamma.
D) All American options have positive gamma and American calls have negative theta, but American puts may sometimes have positive theta.
Correct Answer:

Verified
Correct Answer:
Verified
Q2: The price of a European call option
Q3: You hold a straddle on a stock
Q4: Which of the following statements is false?<br>A)
Q5: The gamma of a put is typically
Q6: You are short a put on
Q8: The delta of a call option is
Q9: Which of the following is NOT valid
Q10: Which of the following statements is true?
Q11: Which of the following statements is true?
Q12: You hold a portfolio of a long