In mathematical finance, the Greeks are the quantities representing the sensitivities of the price of derivatives to a change in underlying parameters on which the value of an instrument is dependent. The name is used because the most common of these sensitivities are often denoted by greek letters. Collectively these have also been called the risk sensitivities, risk measures or hedge parameters.
The Greeks are vital tools in risk management. Each Greek measures the sensitivity of the value of a portfolio to a small change in a given underlying parameter, so that component risks may be treated in isolation, and the portfolio rebalanced accordingly to achieve a desired exposure; see for example delta hedging.
Click here to download the copy of the excel sheet.
Anil Bains has developed end-to-end financial models for Real Estate, FMCG, Power, Roads and Telecom Sector and released them as Open Source. He has extensive experience in the financial services, analytics and training domain. Apart from making Financial Modeling simple and accessible for the masses, Anil loves playing volleyball and has a mean spike.
Global Association of Risk Professionals,
Inc. (GARP®) does not endorse, promote, review or warrant the
accuracy of the products or services offered by Edu for FRM®
related information, nor does it endorse any pass rates claimed by
the provider. Further, GARP is not responsible for any fees or
costs paid by the user to Edu nor is GARP responsible for any fees
or costs of any person or entity providing any services to Edu
Study Program. FRM®, GARP® and Global Association of Risk
Professionals®, are trademarks owned by the Global Association of
Risk Professionals, Inc
CFA® Institute, CFA®, and Chartered
Financial Analyst® are trademarks owned by CFA® Institute. CFA®
Institute does not endorse, promote, or warrant the accuracy or
quality of the products or services offered by Edu.
Post ID = 7006
Utmost care has been taken to ensure that
there is no copyright violation or infringement in any of our
content. Still, in case you feel that there is any copyright
violation of any kind please send a mail to email@example.com and we
will rectify it.