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:

Confidence Interval

An estimate expressed as an interval of values used to estimate a population parameter, indicating the reliability of the estimate.

Confidence Interval

A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter, with a certain level of confidence.

Domestic Automobiles

Vehicles manufactured within a country's borders, typically referring to cars made by national companies.

Confidence Interval

A range of values derived from a dataset to estimate the unknown value of a parameter.