: 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.
What are derivatives: Derivatives are financial contracts that derive their value from an underlying asset. These could be stocks, indices, commodities, currencies, exchange rates, or the rate of interest. These financial instruments help you make profits by betting on the future value of the underlying asset.