By: Shamima Sultana

In reply to Wesley.

Hello Wesley,

Thank you! Great question. The value 0.07 for Time to Maturity represents the fraction of a year until the option expires. It’s calculated by dividing the number of days to expiration by 365. For example, if the option expires in 25 days, Time to Maturity would be 25/365 ≈ 0.07. This approach standardizes the time input for the Black-Scholes model.

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