# blstheta

Black-Scholes sensitivity to time-until-maturity change

## Syntax

## Description

`[`

returns the call option theta `CallTheta`

,`PutTheta`

] = blstheta(`Price`

,`Strike`

,`Rate`

,`Time`

,`Volatility`

)`CallTheta`

, and the put option
theta `PutTheta`

.

Theta is the sensitivity in option value with respect to time and is measured
in years. `CallTheta`

or `PutTheta`

can be
divided by 365 to get Theta per calendar day or by 252 to get Theta by trading
day.

`blstheta`

uses `normcdf`

, the normal cumulative distribution function, and `normpdf`

, the normal probability density function, in the Statistics and Machine Learning Toolbox™.

In addition, you can use the Financial Instruments Toolbox™ object framework with the `BlackScholes`

(Financial Instruments Toolbox) pricer object to obtain price and
`theta`

values for a `Vanilla`

,
`Barrier`

, `Touch`

,
`DoubleTouch`

, or `Binary`

instrument using a
`BlackScholes`

model.

**Note**

`blstheta`

can handle other types of underlies like
Futures and Currencies. When pricing Futures (Black model), enter the input
argument `Yield`

as:

Yield = Rate

`Yield`

as:Yield = ForeignRate

`ForeignRate`

is the continuously compounded,
annualized risk-free interest rate in the foreign country.

## Examples

## Input Arguments

## Output Arguments

## More About

## References

[1] Hull, John C. *Options, Futures, and Other
Derivatives.*
*5th edition*, Prentice Hall, 2003.

## Version History

**Introduced in R2006a**