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Question
Which one of the following statements concerning the relationship between time to option maturity and call and put prices is correct?A. Put and call prices increase at the same rate as the time to option maturity increases.
B. Put prices and time to maturity are inversely related.
C. Call prices tend to increase faster than put prices as the time to option maturity increases.
D. Put prices increase while call prices remain constant as the time to option maturity increases.
E. Call prices are inversely related to time to maturity.
Answer
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