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

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Definitions:

Specific Nerve Energies

The theory that different sensory nerves convey specific sensations to the brain.

Sensory Receptor

A specialized neuron that detects a specific type of stimulus and converts it into an electrical signal in the nervous system.

Signal Detection Theory

A means to quantify the ability to discern between information-bearing patterns and random patterns that distract from the information.

Stimulus

Any object or event that elicits a sensory or behavioral response in an organism.