Why is theta highest at-the-money?
Could you please elaborate on why theta is typically highest at-the-money? It seems to be a crucial aspect in finance and cryptocurrency trading, yet its significance often goes unnoticed. Could you possibly explain the reasons behind this phenomenon, and how it impacts the overall market dynamics? Additionally, how does theta's behavior at-the-money contribute to risk management strategies? I'm particularly interested in understanding its implications for investors and traders alike. Thank you for your insights.