Figure 1.2 Using the Figure Above, Identify the Labeled Part

question 156

Short Answer

Figure 1.2

Using the figure above, identify the labeled part.
-Label I: ______________________________

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Definitions:

Time To Expiration

This refers to the remaining time until a derivative contract, such as an option or futures contract, becomes invalid or ceases to exist.

Underlying Security

An asset, such as a stock or bond, on which financial derivatives like options and futures are based.

Delta

In finance, it represents the ratio that compares the change in the price of an asset, usually a marketable security, to the corresponding change in the price of its derivative.

Gamma

A measure of the rate of change in an option's delta for a one-unit change in the price of the underlying asset.