Chapter 06 · Section 6.1
Time Decay
Which of the following statements are correct?
f) b and c
Yes. Now watch as we add a p/l profile for the position 30 days before expiration. After line B, time will help your p/l because of the short calls. Up until line B, you have a net "paid" position, which will be hurt by time decay.Continue
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.
e) a and b