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mialanknox
Joined: 15 May 2019
Last visit: 19 Oct 2025
Posts: 141
Given Kudos: 99
Location: Switzerland
Concentration: Finance, General Management
Schools: Wharton '26 CBS '26 Kellogg '26 Booth '26
GPA: 4
WE:Investment Banking (Finance: Investment Banking)
06 Jul 2023, 04:27
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D
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
65%
(hard)
Question Stats:
40% (01:28) correct
60%
(01:46)
wrong
based on 131
sessions
History
Date
Time
Result
Not Attempted Yet
When a trader owns two options, the loss incurred due to time erosion is greater than it would be due to a single-option strategy.
A. Due to time erosion is greater than it would be due to single-option strategy.
B. By time erosion is greater than that for a single-option strategy.
C. For time erosion is greater than for a single-option strategy.
D. Because of time erosion is greater than it would be because of a single-option strategy.
E. Caused by time erosion is greater compared to the loss for a single-option strategy.
A. Due to time erosion is greater than it would be due to single-option strategy.
B. By time erosion is greater than that for a single-option strategy.
C. For time erosion is greater than for a single-option strategy.
D. Because of time erosion is greater than it would be because of a single-option strategy.
E. Caused by time erosion is greater compared to the loss for a single-option strategy.
mialanknox
Joined: 15 May 2019
Last visit: 19 Oct 2025
Posts: 141
Own Kudos:
Given Kudos: 99
Location: Switzerland
Concentration: Finance, General Management
Schools: Wharton '26 CBS '26 Kellogg '26 Booth '26
GPA: 4
WE:Investment Banking (Finance: Investment Banking)
20 Jul 2023, 10:41
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mialanknox
A - (1) Meaning issue: Usage of a preposition or prepositional phrase "due to" alters the intended meaning - Option A implies owning a single option is the CAUSE for the loss and it also equates "time erosion" and "single-option strategy". Incorrect.
B - (1) Meaning issue: Usage of a preposition or prepositional phrase "by" alters the intended meaning - The construction "incurred by" is not used to indicate a cause-effect relationship. "Incurred by" should be followed by who or what has incurred the loss, in this case, the trader. Incorrect.
C - (1) Meaning issue: Usage of a preposition or prepositional phrase "for" alters the intended meaning - Option C compares "time erosion" and "single-option strategy" and not the loss incurred when owning one or two options. Incorrect.
D - (1) Correct preposition used "Because of" - The intended meaning is clearly conveyed by this sentence - It implied that "time erosion" is the REASON for losses incurred when a trader owns two options.
E - (1) Comparison issue: Usage of "than" vs "compared to" - because the comparative "greater" has been used, the sentence has to use "than". Incorrect.
Therefore, option D is the correct answer.
20 Jul 2023, 20:28
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When a trader owns two options, the loss incurred due to time erosion is greater than it would be due to a single-option strategy.
A. Due to time erosion is greater than it would be due to single-option strategy.
B. By time erosion is greater than that for a single-option strategy.
C. For time erosion is greater than for a single-option strategy.
D. Because of time erosion is greater than it would be because of a single-option strategy.
E. Caused by time erosion is greater compared to the loss for a single-option strategy.
bb
Hi BB, i have opted for A here. Shouldn't due to be used for mentioning the reasons which are noun/adjective (loss) here while because of being used for reasons which are verb.
A. Due to time erosion is greater than it would be due to single-option strategy.
B. By time erosion is greater than that for a single-option strategy.
C. For time erosion is greater than for a single-option strategy.
D. Because of time erosion is greater than it would be because of a single-option strategy.
E. Caused by time erosion is greater compared to the loss for a single-option strategy.
bb
Hi BB, i have opted for A here. Shouldn't due to be used for mentioning the reasons which are noun/adjective (loss) here while because of being used for reasons which are verb.
