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Does the Underlying Asset’s Volatility Affect the Calculation of Theta?

Yes, implied volatility is a factor in the calculation of Theta.
Greeks.Live22.11.25

Does the Underlying Asset’s Volatility Affect the Calculation of Theta?

Yes, the underlying asset's volatility (specifically implied volatility) affects the calculation of Theta. Higher implied volatility results in a higher initial time value, but the Theta value itself (the rate of decay) is also influenced by IV, time to expiration, and moneyness.

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