Time decay is greatest for an option close to expiration. Use the spreadsheet functions to evaluate this
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Time decay is greatest for an option close to expiration. Use the spreadsheet functions to evaluate this statement. Consider both the dollar change in the option value and the percentage change in the option value, and examine both in-the-money and out-of-the-money options.
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Time decay is measured by the Greek letter theta We will show in the following that the statement of the exercise is not always correct We assume S 50 ...View the full answer
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