What is the key concept highlighted in the adage 'Time is money' in the context of options trading? Option: Options trading is a quick way to make money, Timing the market is crucial for successful options trading, The passage of time significantly influences option pricing, Options trading requires a substantial time investment

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What is the key concept highlighted in the adage 'Time is money' in the context of options trading?

Options trading is a quick way to make money

Timing the market is crucial for successful options trading

The passage of time significantly influences option pricing

Options trading requires a substantial time investment

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What is the key takeaway regarding the impact of time decay on options trading?

Time decay is irrelevant for options with high intrinsic value

Options are a highly stable investment due to minimal time decay

All options, both calls and puts, lose value as the expiration date approaches

Time decay only affects options that are 'out of the money' (OTM)

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What is the primary factor influencing the choice of option strike when buying options?

"Current market price of the underlying asset"

"Brokerage fees"

"Time to expiry"

"Investor's risk tolerance"

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What is Theta in options trading?

The sensitivity of an option's price to changes in implied volatility

The rate of change in an option's price relative to the underlying asset's price

The rate at which an option loses value as time passes

The difference between an option's price and its intrinsic value

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What is the relationship between time to expiry and the time value component of an option's premium?

Time value remains constant regardless of time to expiry

Time value increases as time to expiry decreases

The relationship between time value and time to expiry is unpredictable

Time value decreases as time to expiry decreases

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How does the likelihood of an option expiring 'in the money' (ITM) change as the time to expiry increases?

The likelihood of expiring ITM decreases

The likelihood of expiring ITM increases

The likelihood of expiring ITM remains constant

The likelihood of expiring ITM is unpredictable