Option Greeks
Option prices are driven by many variables, including changes in the underlying price, interest rates, expiration dates, and market volatility. Together, these are called “Greek letters” because the symbols are used to illustrate that these complex derivatives are understood through …
Option prices are driven by many variables, including changes in the underlying price, interest rates, expiration dates, and market volatility. Together, these are called “Greek letters” because the symbols are used to illustrate that these complex derivatives are understood through arithmetic and the use of Greek letters. A simple understanding of how “Greeks” are an important part of managing information selection.
Curriculum
- 1 Section
- 5 Lessons
- 18 Minutes
- Option Greeks10
- 1.0Options Delta – The Greeks5 Minutes
- 1.1An option’s premium is 1.50 and has a 40 delta with the Underlying future at 100. If the underlying future moved from 100 to 102, what would the option’s new premium be based on delta?1 Question
- 1.2Options Gamma – The Greeks4 Minutes
- 1.3Call options have positive gamma values and put options have negative gamma values.1 Question
- 1.4Options Theta – The Greeks2 Minutes
- 1.5Theta is usually expressed as a positive number.1 Question
- 1.6Options Vega – The Greeks3 Minutes
- 1.7The At the Money strike has the lowest vega.1 Question
- 1.8Options Premium and the Greeks4 Minutes
- 1.9Which of the following Greeks are a measure impacting an options price?1 Question
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