Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Theta is a time decay parameter measuring the decline in option premium as time to expiration shortens. Therefore, a. Theta is only negative if the
Theta is a time decay parameter measuring the decline in option premium as time to expiration shortens. Therefore,
a. | Theta is only negative if the option is in-the-money | |
b. | Theta is only positive if the option is in-the-money | |
c. | Theta is positive | |
d. | Theta is negative |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started