Question: Although is generally negative, there are cases (typically of high interest rates) where it can be positive: An in-the-money put with a high

Although θ is generally negative, there are cases (typically of high interest rates)

where it can be positive:

• An in-the-money put with a high interest rate

• An in-the-money call on a currency that has a high interest rate (or—equivalently—an in-the-money call on a stock with a very high dividend payout rate).

Find two examples

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