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Does Theta Affect Intrinsic Value?

No, Theta only affects the extrinsic (time) value; intrinsic value is determined by the strike price and market price.
Greeks.Live02.11.25

Does Theta Affect Intrinsic Value?

No, Theta (time decay) only affects the extrinsic value (time value) component of the option premium. The intrinsic value is solely determined by the relationship between the strike price and the current market price of the underlying asset.

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