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Suppose you are long one call option and long one put option

Finance

Suppose you are long one call option and long one put option. In this case, the theta of your overall position is: Greater than zero. Less than zero Exactly zero.

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ANSWER

A) GREATER THAN ZERO

The Theta value is usually at its highest point when an option is at-the-money, or very near the money. As the underlying security moves further away from the strike price, meaning the option is going into-the-money or out-of-the money, the Theta value gets lower.