kappa

Definition

A value representing the expected change in the price of an option in response to a 1% change in the volatility of the underlying stock.

Use kappa in a sentence

You should always make sure that you are ahead of the kappa and are getting the best price on your trades.

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The kappa of the security was higher than most so we had determined that the responsive security was too risky.

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Ellen reviewed the bookkeeping for her client's investments, but noted that he had forgotten to factor in the kappa for his records.

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Kansas City Board of Trade (KCBT) lambda