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Define: Greeks



Greeks are 5 mathematical parameters that govern how the price of an option change under various conditions.

The 5 greeks are; Delta, Gamma, Theta, Vega and Rho. Delta governs how options price changes with changes in stock price. Gamma governs how delta changes with changes in stock price. Theta governs the rate of time decay. Vega governs how options price changes with changes in implied volatility. Rho governs how options price changes with changes in interest rate.

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