Comment on Theta

punit417 commented on 17 Aug 2016, 05:59 PM

Thanks sir for the reply.
Does that mean that time value of the option can go negative even if there are two weeks left for expiry? My understanding is that time value of an option will depreciate towards zero(it should not go below zero) as expiry time approaches.

Please clear my understanding.
Thanks a lot in advance.

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