Collecting theta but paying
Quantitative Finance
Level
1
Your theta position is shown to be positive (collecting theta). Is it possible that everything stays the same for 12 hours, but your position loses money?
Yes, theta is just a snapshot of the moment
No, collecting theta must have made money
Yes, theta is only a suggestion
No, positive theta will always make money
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1 solution
Your theta position will always remain the same as it is just a snapshot of the moment .Option A is correct