Gamma

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Gamma

The ratio of a change in the option delta to a small change in the price of the asset on which the option is written.

Gamma

A measure of how fast the delta changes. That is, gamma is a mathematical measurement of how fast the price of an option contract changes for each unit of change in the price of the underlying asset. The larger the gamma, the more volatile the option contract is. If an option is at the money or near the money, gamma is large, but if it is deep in or deep out of the money, gamma can become quite small. This is because when an option is near the money, a small change in the underlying asset's value can greatly change the level of demand for the contract. This is not the case for deep in and deep out of the money options.

gamma

The sensitivity of an option's delta to changes in the price of the underlying asset. The gamma of an option is greatest when an option is near the money (strike price close to market price of underlying asset) and near zero when an option is deep out of the money.
References in periodicals archive ?
For comparison with the Ce[Br.sub.3] detector, the prompt gamma-ray spectrum from a cylindrical 76 mm x 76 mm (diameter x height) La[Cl.sub.3]:Ce detector was acquired with the saline water samples.
Before Fermi was launched, astronomers had expected to find a lot more gamma-ray binaries than they did.
It allowed for the stacking of 200 separate observations on top of each other to re-create the image of a gamma-ray burst in much better quality - yet, no trace of a radio afterglow was found.
LAT is the modern-day version of the Energetic Gamma-Ray Experiment Telescope (EGRET) instrument, which flew more than a decade ago on CGRO.
NASA's Compton Gamma-Ray Observatory, which operated in the 1990s, detected high-energy flares, but the galaxy was quiet during Fermi's first two and a half years in orbit.
Efforts to confirm those observations helped spur the development of improved gamma-ray detectors, a legacy culminating in the Large Area Telescope (LAT) aboard Fermi.
New gamma-ray instruments that provide a narrower field of view would settle the question by pinpointing the source's true location, Leventhal says.
"By studying the shape of gamma-ray lines, we're learning a lot about the explosion itself," Barthelmy says.
Only about 3 percent of the gamma-rays reaching Solar Max come directly from the Soviet reactors.
For now, Fermi's flurry of initial findings--which include discoveries about gamma-ray bursts as well as a possible new class of pulsars, the rapidly spinning corpses of exploded stars--poses new puzzles.
The explosion, known as a gamma-ray burst and designated GRB 130427A, has topped the charts as one of the brightest ever seen.
Washington, August 14 ( ANI ): Gamma-ray photons seen emanating from the center of the Milky Way galaxy could support the theory that dark matter exists at the center of galaxies, according to UC Irvine astrophysicists.