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Omega

   Also found in: Dictionary/thesaurus, Medical, Legal, Acronyms, Idioms, Encyclopedia, Wikipedia 0.01 sec.
Omega
A measure of the change in price of an option relative to a percentage change in the price of the underlying asset. For example, if an option contract has an omega of 3.5, its price increases 3.5% for every 1% of change in the price of the underlying. Omega is also known as speed. It is calculated as a derivative of the option's gamma. See also: Delta, Volatility.


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