n NISM Certifications
XIII NISM Series XIII
Medium

Theta refers to:

Practice question from NISM Series XIII for SIF - Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    The change in option price due to a one percentage point change in interest rates

  2. B

    The sensitivity of an option price to changes in market volatility

  3. The change in option price due to a one-day decrease in time to expiration

    Correct answer

  4. D

    The speed with which an option moves with respect to the price of the underlying asset

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

Test yourself for real

Take a full NISM Series XIII mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.