Illustrates an example of Greeks

Question

Illustrates an example of Greeks?

Answer 1

Delta, Δ = ∂V/∂S, it is the sensitivity of an option price for the stock price. And Gamma, G= ∂²V/∂S², it is the second derivative of the option price for the underlying stock; this is the sensitivity of delta to the stock price. These two illustrations are termed as greek as they are members of the Greek alphabet. Several sensitivities, like vega = ∂V/∂σ , are even termed as 'greek' even if they are not in the Greek alphabet.