Question: Compare the following two call options, written on the same stock: Call A B . .50 .25 S 50 K 50 50 Volatility 20% 20%

Compare the following two call options, written on the same stock:

Compare the following two call options, written on the same stock: Call A B . .50 .25 S 50 K 50 50 Volatility 20% 20% Dividend yield 0 0 50 Which option has the higher absolute value of theta? Explain briefly

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