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Kappa |
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Kappa The ratio of the dollar price change in the price of an option to a 1% change in the expected volatility. Kappa In options, the ratio of a price change of a contract to a 1% change in the volatility of the underlying asset. Generally speaking, option prices increase when volatility increases. The option's kappa is used in regression analysis. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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