What are the delta and gamma of an option?
Answer to relevant QuestionsExplain why the writer of an option would prefer an option with a high theta (all other factors equal). When the buyer of a put option on a futures contract exercises, explain the resulting position for the buyer and the writer. What is the motivation for the purchase of an over-the-counter option? What is the relationship between an interest-rate agreement and an option on an interest rate? The following appeared on a quote sheet: “Receiver Swaption: An option to receive the fixed leg of a swap (i.e., long receiver is long duration). Payer Swaption: An option to pay the fixed leg of a swap (i.e., long payer ...
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