The Theta of an Option Is Defined As

question 83

Multiple Choice

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.

---

Definitions:

Situational Influences

External factors or circumstances that can affect an individual's behavior, decisions, and attitudes.

Instinct-Based Approach

A method or perspective that prioritizes innate, fixed patterns of behavior in humans and animals, often as explanations for certain types of actions or responses.

Behaviorist Approach

A psychological perspective focusing on observable behaviors and the ways they're learned, often through conditioning processes.

Specific, Topic-Based Theories

Theories that are developed and applied to particular subjects or areas of study to explain phenomena within that domain.