A portfolio that consists of both long both 40 delta calls and long 60 delta puts will be ? theta
Question
Solution 1
Theta is a measure of the rate of decline in the value of an option due to the passage of time. It can also be referred to as the time decay of an option.
If you are long on both calls and puts, your overall theta will be negative. This is because as time passes, all else being equal, the value of Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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