Comment on Theta

Karthik Rangappa commented on 10 Jul 2015, 05:05 AM

Pankit – you missed one important line 🙂

“All else equal then by virtue of time the premium value decreases on a daily basis”. But in reality “all else” is not equal. So on hand if theda decreases premium value, delta or vega will increase the premium value. So it it very important to understand all the greeks and its cross dependencies. We will talk about it later in this module.

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