Comment on Theta

Amarjeet Singh commented on 12 Jul 2015, 01:08 PM

Mistake at chapter 14.3:
A Theta of -0.5 indicates that the option premium will lose -0.5 points for every day that passes by. For example, if an option is trading at Rs.2.75/- with theta of -0.5 then it will trade at Rs.2.70/- the following day (provided other things are kept constant).
ACTUALLY THE NEXT DAY OPTIONS VALUE SHOULD BE 2.25 AND NOT 2.70
PLEASE RECTIFY THIS.

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