Module 2 Lesson 3 Flashcards
1
Q
Longer dated options are?
A
More expensive.
2
Q
DTE stands for?
A
“Days Til Expiry” and is the standard
measure of how much time is left in the option.
Counts calendar days, so includes weekends and
holidays.
3
Q
The $ impact on the option price from a 1 day
decrease in DTE is called?
A
Theta.
4
Q
Time decay is?
A
The speed at which the option price goes down in value, solely due to the passage of time.
5
Q
Theta is always?
A
Negative.
