n NISM Certifications
NSM General NISM
Medium

The impact of time decay on an option's price is measured by ______.

Practice question from NISM Series IV - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Theta

    Correct answer

  2. B

    Gamma

  3. C

    Rho

  4. D

    Delta

Why this is the answer

Theta measures time decay.

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