Читать книгу Binary Options - Hamish Raw - Страница 49

1. Is the theta for the following prices of upbets and downbets positive or negative?

2. If the underlying is $50 and the theta of the $49 strike downbet is –5.1, roughly what will the theta of the $51 strike downbet be?

3. If there are eight days to expiry and one attempts to roughly approximate the time decay of a bet over the forthcoming single day, which theta would provide the most accurate estimate?

a) the current 8-day theta

b) the 7-day theta, or

c) a theta somewhere in between the seventh and eighth day?

4. For each bet find the time decay over the requested number of days using the associated theta.

5. The following table provides the prices of three bets at five separate points in time (t) where t–1 has one day less to expiry than t. Find an approximation to theta for each bet at time t.