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Time Decay |
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Time decay Related: Theta Time Decay The decline in value of an option contract as it approaches the expiration date. In an out-of-the-money option, the closer the contract is to expiry, the less likely it is that the option will become in-the-money, reducing its value. Time decay is also called time-value decay. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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