A stock is trading at $24. A three-month European put option with a strike of $35 costs $10.855 and has a theta of 1.735. The passage of one trading day ( $\approx 0.004$ years) causes the value of the put to, approximately,
A) Fall by $0.004$ .
B) Fall by $0.007$ .
C) Fall by $0.043$ .
D) Rise by $0.007$ .

Question

Quizplus · Accepted Answer

The Answer of A stock is trading at $24. A three-month European put option with a strike of $35 costs $10.855 and has a theta of 1.735. The passage of one trading day ( $\approx 0.004$ years) causes the value of the put to, approximately,
A) Fall by $0.004$ .
B) Fall by $0.007$ .
C) Fall by $0.043$ .
D) Rise by $0.007$ .

A Stock Is Trading at $24 ≈0.004\approx 0.004≈0.004 Years) Causes the Value of the Put To, Approximately, A)

A Stock Is Trading at $24 $\approx 0.004$ Years) Causes the Value of the Put To, Approximately,
A)