Time Decay of an Option Refers to the Fall in the Time

question 23

True/False

Time decay of an option refers to the fall in the time value as it gets closer to expiry.

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Definitions:

Living-Alone-Together

A relationship trend where partners maintain separate residences but are committed to a long-term relationship.

Disposable Income

Income available for spending and saving after taxes have been deducted, reflecting an individual's or family's financial resources for discretionary expenses.

Evolutionary Signal

Biological or behavioral traits that have evolved to convey information about an organism’s genetic fitness or status to others.

Level of Attractiveness

A subjective assessment of how appealing, desirable, or aesthetically pleasing someone or something is perceived to be.