Theta Measures an Option's

question 10

Multiple Choice

Theta measures an option's:

• A)intrinsic value.
• B)volatility.
• C)rate of time decay.
• D)sensitivity to changes in the value of the underlying asset.
• E)sensitivity to risk-free rate changes.

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Definitions:

Validity

The degree to which a test accurately measures what it purports to measure or the extent to which a study's conclusions can be considered true.

Readiness Tests

Tests that measure one’s readiness for moving ahead in school. Often used to assess readiness to enter kindergarten or first grade. It is a type of achievement test.

Diagnostic Testing

A process used in medicine and other disciplines to identify the presence or absence of a condition, disease, or anomaly.

Educational Ability

The capacity or skill set a person possesses which contributes to their level of performance in educational settings.