Chapter 06 · Section 6.1
Time Decay
Which of the following statements are correct?
e) a and b
No. The position is similar to a net long options position until line A and similar to a net short options position at line B. The effect of time decay at these two points will be opposite one another, not identical.
f) b and c
a) Time decay helps your position at line A.
b) Time decay helps your position at line B.
c) Time decay hurts your position at line A.
d) Time decay hurts your position at line B.