The Theta of an option is defined as:
A) expected change in the option premium for a small change in time to expiration.
B) expected change in the option premium for a small change in volatility.
C) expected change in the option premium for a small change in the spot rate.
D) expected change in the option premium for a small change in the domestic interest rate.
Correct Answer:
Verified
Q59: The price of an option is always
Q60: Option premiums deteriorate at a/an _ as
Q61: Option values increase with the length of
Q62: For a $1.50/£ call option with an
Q63: The sensitivity of the option premium to
Q65: A trader who is buying options of
Q66: The Rho of an option is defined
Q67: The Phi of an option is defined
Q68: The Lambda of an option is defined
Q69: If an American-style option possesses time value
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents