Comment on Theta

Karthik Rangappa commented on 27 Jun 2016, 11:09 AM

Example : Theta of +0.2 implies that the premium erodes 0.2 points on a daily basis till we hit expiry…this is assuming all else equal.

1 & 2) This is because of increase in delta or maybe volatility. The same explanation holds true for both the cases you mentioned.

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