The Greeks are a set of functions that show the
sensitivity of an option's fair value to a number of changes in market
conditions. The Greeks can help you assess and compare various options
positions; they also tell you how much risk a certain position entails.
The Greeks are called ï¿½Deltaï¿½, ï¿½Gammaï¿½, ï¿½Vegaï¿½, ï¿½Thetaï¿½, and ï¿½Rhoï¿½.
There are numerous ways of estimating the risks
associated with options positions, including an increase or decrease in
implied volatility, the risk associated with falling or increasing stock
prices, and the passing of time. Each Greek will estimate the risk for a
Describes the degree of change in an option's price based on a given
change in the price of its underlying;
Describes the change in an option's delta for a given change in the
price of its underlying;
Describes the change in an option's price based on the passing of
Describes the change in an option's price based on the changes in
Describes the change in an option's price based on a change in
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