: an informal form of a name. â Diminutives can be a shortened form of a name (such as âJenâ for âJenniferâ and âDickâ for âRichardâ) or a name with a diminutive suffix added to it (such as âBobbyâ for âBobâ).
The sensitivity of an option's market value relative to a change in the time to expiration. Theta is a measure of time decay and tends to grow larger as an option approaches expiration.
Derivative (finance) In finance, a derivative is a contract that derives its value from the performance of an underlying entity. This underlying entity can be an asset, index, or interest rate, and is often simply called the underlying. Derivatives can be used for a number of purposes, including insuring against price movements, increasing exposure to price movements for speculation or getting access to otherwise hard-to-trade assets or markets. Some of the more common derivatives include forwards, futures, option