Brilliant

Practice

Algebra
Geometry
Number Theory
Calculus
Discrete Mathematics
Basic Mathematics
Logic
Classical Mechanics
Electricity and Magnetism
Computer Science
Quantitative Finance
Chemistry

Excel in math and science

Master concepts by solving fun, challenging problems.

It's hard to learn from lectures and videos

Learn more effectively through short, interactive explorations.

Used and loved by over 7 million people

Learn from a vibrant community of students and enthusiasts,
including olympiad champions, researchers, and professionals.

Log in with Facebook Log in with Google

or

Log in with email

Join using Facebook Join using Google

or

Join using email

New user? Sign up

Existing user? Log in

Theta position of call spread

Quantitative Finance Level 2

The stock is currently trading at 20. If you are long the 20-22 call spread (same expiry), what is your theta position?

Collecting Theta, OTM options have more theta to collect Theta neutral, net option position is 0. It depends on the time to expiry Paying Theta, OTM options have less theta to collect.

View solutions

Excel in math and science

Master concepts by solving fun, challenging problems.

It's hard to learn from lectures and videos

Learn more effectively through short, interactive explorations.

Used and loved by over 7 million people

Learn from a vibrant community of students and enthusiasts,
including olympiad champions, researchers, and professionals.

Your answer seems reasonable. Find out if you're right!

Sign up to access problem solutions.

That seems reasonable. Find out if you're right!

Log in with Facebook Log in with Google

or

Log in with email

Join using Facebook Join using Google

or

Join using email

New user? Sign up

Existing user? Log in

by Calvin Lin

×

Problem Loading...

Note Loading...

Set Loading...