: 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.
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 called the underlying. Credit derivative products can take many forms, such as credit default swaps, credit linked notes and total return swaps. 2  Derivative: A financial contract whose value is derived from the performance of assets, interest rates, currency exchange rates, or indexes.