We all know that Greeks have contributed greatly in the field of mathematics. Hence, if you want to learn more about their contributions to the world of mathematics, especially when it comes to pricing, you need to know more about their options. Greeks are nothing but vital instruments that can help you understand more about risk management. They have several parameters that help you learn more about the risks involved when treated in isolation. Hence, Greeks are more important to know about if you are studying in any of the business management school.

There are various Greek options like Delta, Theta, Vega, Gamma and Rho and each one has its own value and sensitivity. Theta option Greeks is more about the measure of sensitivity of the value to the passage of time. Hence, Theta option Greeks is all about time decay. In the practical use it is more about the passage of time like months and years that affect the risk involved. In the field of business management, it is all about dividing the result into the number of days and then per year to understand the amount of money that you lost in a single day.

Hence, as per the risk management rules theta option Greeks is always negative in the long run, but positive in the short period because it depends on the how quick the money returns to you. In this option, the value is money and it further has two different kinds of values – intrinsic value and time value. The intrinsic value of the money is the real value of the money that will increase with the passage of the time. On the other hand, the time value of money in Theta option Greeks is about the investment at a later stage in time.