Theta in Financial Formulas

Theta measures the rate of change in the option price in relation to the passage of time, indicating how much the option’s value decreases as time passes. And is denoted by θ.

Formulas to find Theta in Financial

fxThetaGo

List of variables in Financial formulas

fx Change in Option Premium Go

fx Change in Time to Maturity Go

FAQ

What is the Theta?

Theta measures the rate of change in the option price in relation to the passage of time, indicating how much the option’s value decreases as time passes.

Can the Theta be negative?

{YesorNo}, the Theta, measured in {OutputVariableMeasurementName} {CanorCannot} be negative.

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