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When the underlying price is 100.00 the option is at-the-money and the passing of time has no effect on the price of the binary option as it is always 50. When the underlying price is below 100.00 the price profiles all slope upwards reflecting a positive theta, whereas the out-of-the-money profiles, i.e. where S 100.00, the price profiles all slope down meaning a negative theta. Fig.1 Binary Put Option Price profiles w.r.t. Time to Expiry.
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