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You take a large sample of soil and put it all into individual pots. You then divide the pots into two groups. In the first group, every pot of soil has been sterilized, and thus contains no bacteria. In the second group, none of the pots of soil have been sterilized. You plant soybean seeds in all the pots. What would you expect to see as the seeds sprout and grow?
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.
Theta
In financial markets, it represents the rate of decline in the value of an option as time to expiration decreases, holding all else constant.
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