The change in an option's price in response to a change in the time to the option's expiration is reflected by
A) Gamma
B) Delta
C) Theta
D) Beta
E) Vega

Question

Quizplus · Accepted Answer

The change in an option's price in response to a change in the time to the option's expiration is reflected by Theta. Theta measures the rate of decline in the value of an option as time passes.

The Change in an Option's Price in Response to a Change