Does Theta Decay Faster for a Call or a Put Option, All Else Being Equal? ▴ Learn

Does Theta Decay Faster for a Call or a Put Option, All Else Being Equal?

All else being equal, including moneyness and time to expiration, the theta decay for a call and a put option should be approximately the same. The Black-Scholes model suggests that time decay is a function of time and volatility, not the direction of the option.

However, slight differences can arise due to interest rate effects and dividend yields.

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