time decay

Definition of "time decay"
  1. A decrease in an option's value as it nears its expiration date, particularly if the underlying instrument's price is stable
How to use "time decay" in a sentence
  1. The time decay of her investment options became significant as the expiration date approached.
  2. Due to the stable price of the underlying stocks, the options experienced significant time decay.
  3. He had to account for the time decay when considering his stock options.

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