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SIE: Options
SIE practice questionmediumGreeks basics

Which Greek quantifies the impact of time decay on options?

  1. AGamma
  2. BDelta
  3. CTheta✓ Correct answer
  4. DVega
Explanation

Why CTheta

Theta quantifies time decay. Delta measures price sensitivity, gamma is delta’s rate of change, vega is sensitivity to volatility.

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