The eighth letter of the Greek alphabet.
[Greek thēta, of Phoenician origin; akin to Hebrew ṭêt, teth.]
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The eighth letter of the Greek alphabet.
[Greek thēta, of Phoenician origin; akin to Hebrew ṭêt, teth.]
A measure of the rate of decline in the value of an option due to the passage of time. Theta can also be referred to as the time decay on the value of an option. If everything is held constant, then the option will lose value as time moves closer to the maturity of the option.
Theta is part of the group of measures known as the "Greeks" (other measures include delta, gamma and vega) which are used in options pricing.
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For example, if the strike price of an option is $1,150 and theta is 53.80, then in theory the value of the option will drop $53.80 per day.
The measure of theta quantifies the risk that time imposes on options as options are only exercisable for a certain period of time. Time has importance for option traders on a conceptual level more than a practical one, so theta is not often used by traders in formulating the value of an option.
Theta is the 8th letter in the Greek alphabet.
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Scholarly journal of parapsychology published quarterly by the Psychical Research Foundation. Its title derives from the initial letter of the Greek word, Thanatos (death) and its concern is mainly with research on the problem of survival of bodily death. It was edited for many years by William G. Roll.Theta has been published since 1963. The publication can be reached c/o Dr. Andrew Nichols, P.O. Box 142193, Gainesville, FL 32614-2193.
Theta (uppercase Θ, lowercase θ or ϑ) is the eighth letter of the Greek alphabet, derived from the Phoenician letter Teth. In the system of Greek numerals it has a value of 9. In Classical Greek θ represented an aspirated voiceless dental plosive (/t̪ʰ/), but in Koiné and later dialects it became a voiceless dental fricative /θ/. In American English, the name of the letter is commonly pronounced [θeɪɾə]. In Modern Greek and British English, the name is pronounced [θiːtə].
Letters such as the early Cyrillic letter fita (Ѳ, ѳ) developed from θ.
In its archaic form, θ was written as:
According to Porphyry of Tyros, the Egyptians used an X within a circle as a symbol of the soul; having a value of nine, it was used as a symbol for Ennead. Johannes Lydus says that the Egyptians used a symbol for Kosmos in the form of theta, with a fiery circle representing the world, and a snake spanning the middle representing Agathos Daimon (literally: good spirit).[1]
The Egyptians also used the symbol of a point within a circle (
, the sun
disc) to represent the sun, which might be a possible origin of its use as the Sun's astrological glyph. It is worthwhile to note that θῆτα (theta) has the same
numerical value in isopsephy as Ηλιος (Helios):
318.
In classical Athens, it was used as an abbreviation for the Greek θάνατος (thanatos, "death") and as it vaguely resembles a human skull, theta was used as a warning symbol of death, in the same way that skull and crossbones are used in modern times. It survives on potsherds used by Athenians when voting for the death penalty.[1]
The lower-case letter θ is used as a symbol for:
The upper-case letter Θ is used as a symbol for:
Theta is known as an option Greek measuring the rate of time decay on a daily basis. One can look at this as an ice cube melting in your hand. A Theta of -.05 means that the option is losing a nickel of time value each day. Other option Greeks include Delta, Vega, Rho and Gamma.[citation needed]
Theta is used colloquially to refer to the quotient of a person's appearance versus time.[citation needed] Similar to the Options investing as a description of the effect of time on price, Theta in this sense describes the effect of time on appearance. For example, a 50-year old woman, who looks as if she were 40 years old, would have a Theta of (50/40=1.20). An excellent example is Vanna White, who appears approximately 10 years younger than her calendar age. Theta is a desirable quality; people generally are more attracted to a person with good theta than those who look their age.
To add the symbol into a document, type Alt-0415 (MS Word 2003 SP2 tested only).
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