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    Fundamentals of Corporate Finance Study Set 9
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    Exam 25: Option Valuation
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    Theta Measures an Option's
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Theta Measures an Option's

Question 10

Question 10

Multiple Choice

Theta measures an option's:


A) intrinsic value.
B) volatility.
C) rate of time decay.
D) sensitivity to changes in the value of the underlying asset.
E) sensitivity to risk-free rate changes.

Correct Answer:

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