# Put call parity for options gamma

In mathematical finance, the Greeks are the quantities representing the sensitivity of the price of derivatives such as options to a change in underlying parameters on which the value of an instrument or portfolio of financial instruments is dependent. The name is used because the most common gammq these sensitivities are denoted by Greek letters (as are some other finance measures).

Delta, Vega and Theta generally get most of the attention, but Gamma has important implications for risk in options strategies that can easily be demonstrated. Portfolio B consist of a european putLinks to all tutorial articles (same as those on the Exam pages)Understanding option GreeksWritten by Mukul PareekCreated on Tuesday, 20 October 2009 22:0Hits: 8181Option Greeks are tricky beasts with their complex formulae and intimidating names.

This article is put call parity for options gamma about the formulae at all. The idea is to discuss what each of the Greeks represent, and understand what drives each of them. Without further introduction, let us launch in and see what they are. Your text book gammq have a great deal of detThis is an advanced topic in Option Theory.

Please refer to this Options Glossary if you do not understand any of the terms.Gamma is one of the Option Greeks, and it measures the rate of change of the Delta of the option with respect to a move in the underlying asset. Since delta is a first cor, thus gamma is a second derivative of the price of the option.Gamma is represented by $$\gamma$$.The gamma of an option is the second derivative of the option value with respect to the change in the underlying.

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