What Does Theta Measure

question 10

Multiple Choice

What does theta measure?

• A) The rate of change of delta with the asset price
• B) The rate of change of the portfolio value with the passage of time
• C) The sensitivity of a portfolio value to interest rate changes
• D) None of the above

---

Definitions:

Variance

A measure of the dispersion or spread of a set of values, indicating how much they differ from the average of the set.

Sample Size

The number of observations or data points collected in a sample from a population for analysis.

Continuous Random

Pertains to a random variable that can take an infinite number of possible values in a continuous range.

Value In Interval

Refers to a number or a measurement lying within a specific range defined by a lower and upper boundary.