: 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.
Beta is an important concept to the CAPM Capital Asset Pricing Model, since it determines the risk premium of any one asset relative to the risk of the market as a whole. Beta is a direct correlation of volatility between the market as a whole and any one asset.