# How Does Adjusting the Time to Expiration Affect the Zero-Cost Calculation? ⎊ Path

**Published:** 2025-12-04
**Author:** Greeks.live
**Categories:** Path

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## How Does Adjusting the Time to Expiration Affect the Zero-Cost Calculation?

A longer time to expiration increases the premium of both the put and the call, as both have more time value. This means a zero-cost collar can still be achieved, but the absolute premium amounts will be higher.

The relative change in premium is key; if the call premium increases more than the put premium, the zero-cost range can be widened.

- [How Does a Longer Time to Expiration Affect the Option Premium?](https://learn.greeks.live/path/how-does-a-longer-time-to-expiration-affect-the-option-premium/)

- [How Does Regulatory Status (E.g. Registered Investment Advisor) Affect Platform Access?](https://learn.greeks.live/path/how-does-regulatory-status-e-g-registered-investment-advisor-affect-platform-access/)

- [Why Do Options with the Same Strike Price but Different Expiration Dates Have Different Premiums?](https://learn.greeks.live/path/why-do-options-with-the-same-strike-price-but-different-expiration-dates-have-different-premiums/)

- [How Does the Cost of the Put Option Relate to the Protection Provided?](https://learn.greeks.live/path/how-does-the-cost-of-the-put-option-relate-to-the-protection-provided/)

- [What Is the Relationship between Implied Volatility and Option Premiums?](https://learn.greeks.live/path/what-is-the-relationship-between-implied-volatility-and-option-premiums/)

- [How Does a Longer Time to Expiration Affect the Premium of an Option?](https://learn.greeks.live/path/how-does-a-longer-time-to-expiration-affect-the-premium-of-an-option/)

- [How Does a Change in Interest Rates Affect the Option Premium?](https://learn.greeks.live/path/how-does-a-change-in-interest-rates-affect-the-option-premium/)

- [Define “Volatility Crush” and Its Effect on Option Premiums](https://learn.greeks.live/path/define-volatility-crush-and-its-effect-on-option-premiums/)

## Discover More

### [Why Is the Opportunity Cost of Capital a Crucial Factor in the Cost of Carry Calculation?](https://learn.greeks.live/path/why-is-the-opportunity-cost-of-capital-a-crucial-factor-in-the-cost-of-carry-calculation/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Why Is the Opportunity Cost of Capital a Crucial Factor in the Cost of Carry Calculation?](https://learn.greeks.live/wp-content/uploads/2025/10/Stochastic-Volatility-Surface-Intersections-in-Decentralized-Exchange-Liquidity-Provision-Mechanism-Visualization.webp)

It represents the forgone return on capital, a necessary economic cost to determine the trade's true profitability.

### [How Does Collateral Type (E.g. BTC Vs Stablecoin) Affect Margin Utilization Calculation in Crypto Exchanges?](https://learn.greeks.live/path/how-does-collateral-type-e-g-btc-vs-stablecoin-affect-margin-utilization-calculation-in-crypto-exchanges/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does Collateral Type (E.g. BTC Vs Stablecoin) Affect Margin Utilization Calculation in Crypto Exchanges?](https://learn.greeks.live/wp-content/uploads/2025/10/Complex-High-Fidelity-Simulation-of-Tokenized-Asset-Winglet-Actuator-Dynamics-For-Option-Hedging-Strategies.webp)

Volatile collateral like BTC receives a 'haircut,' lowering its effective value and thus increasing margin utilization.

### [What Is the Typical Expiration Time for Physically-Settled Futures Contracts?](https://learn.greeks.live/path/what-is-the-typical-expiration-time-for-physically-settled-futures-contracts/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Typical Expiration Time for Physically-Settled Futures Contracts?](https://learn.greeks.live/wp-content/uploads/2025/10/Precision-Micro-Electromechanical-Actuator-Assembly-for-Decentralized-Finance-Derivative-Settlement-Mechanisms.webp)

Usually at the close of trading on the expiration date, often in the mid-afternoon for commodities.

### [Does Basis Risk Increase or Decrease as the Time to Expiration Shortens?](https://learn.greeks.live/path/does-basis-risk-increase-or-decrease-as-the-time-to-expiration-shortens/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Does Basis Risk Increase or Decrease as the Time to Expiration Shortens?](https://learn.greeks.live/wp-content/uploads/2025/10/X-Ray-Chronometer-Hand-Vectors-Suggesting-Implied-Volatility-Skew-in-Decentralized-Finance.webp)

Basis risk generally increases as expiration nears due to delta volatility and potential divergence from the underlying asset's price.

### [In Options Trading, How Does Netting Affect the Calculation of Initial Margin?](https://learn.greeks.live/path/in-options-trading-how-does-netting-affect-the-calculation-of-initial-margin/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![In Options Trading, How Does Netting Affect the Calculation of Initial Margin?](https://learn.greeks.live/wp-content/uploads/2025/10/Decentralized-Custody-Mechanism-Exploding-Open-Revealing-Interlocking-Arbitrage-Engines.webp)

Netting offsets risk between different options positions (e.g. long and short calls), lowering the calculated overall risk and initial margin.

### [What Does a Time Value of Zero Signify?](https://learn.greeks.live/path/what-does-a-time-value-of-zero-signify/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Does a Time Value of Zero Signify?](https://learn.greeks.live/wp-content/uploads/2025/10/Abstract-Depiction-of-Decentralized-Autonomous-Organization-Governance-Token-Volatility-Through-Quantum-Entanglement-Visualization.webp)

A time value of zero signifies that the option has expired.

### [How Does the Capital Cost of a PoS Attack Compare to the Operational Cost of a PoW Attack?](https://learn.greeks.live/path/how-does-the-capital-cost-of-a-pos-attack-compare-to-the-operational-cost-of-a-pow-attack/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does the Capital Cost of a PoS Attack Compare to the Operational Cost of a PoW Attack?](https://learn.greeks.live/wp-content/uploads/2025/10/Conceptualizing-Transparent-Vesting-Schedules-and-Option-Exercise-Mechanisms-in-Decentralized-Finance-Protocols.webp)

PoS attack cost is high upfront capital (staked coins at risk of slashing); PoW attack cost is temporary operational expense (rental fees).

### [What Role Do the "Greeks" Play in Adjusting Option Trade Priority?](https://learn.greeks.live/path/what-role-do-the-greeks-play-in-adjusting-option-trade-priority/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Role Do the "Greeks" Play in Adjusting Option Trade Priority?](https://learn.greeks.live/wp-content/uploads/2025/10/Decentralized-Finance-Kinetic-Volatility-Surface-Articulation-Modeling-Secure-Custody-Mechanisms.webp)

The Greeks measure option sensitivity, indirectly driving trade priority by informing a trader's urgency to execute before time decay or volatility changes.

### [How Does the Delta of an ATM Option Change as Time to Expiration Decreases?](https://learn.greeks.live/path/how-does-the-delta-of-an-atm-option-change-as-time-to-expiration-decreases/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does the Delta of an ATM Option Change as Time to Expiration Decreases?](https://learn.greeks.live/wp-content/uploads/2025/10/Symmetrical-Intersecting-Black-Scalar-Beams-Encapsulating-Central-Volatile-Digital-Asset-Orbs.webp)

ATM Delta becomes more extreme (closer to 1 or 0) and volatile as expiration nears.

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