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Entries Tagged as 'time decay'

Time Decay factor

May 23rd, 2015 No Comments

While learning about options, there is one concept called time decay factor when selling options (calls or puts). I thought it’s great if we can apply the same concept to our lives. Time decay factor works like compounding interest except its starting point is at the maximum. As time passes by, its intrinsic ‘value’ decreases. […]

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