BROWSE

Lambda

What is 'Lambda'

The ratio of the percentage change in an option contract's price to the percentage change in the option's underlying price. Lambda is one of the Greeks – a collection of risk measures or risk sensitivities that are frequently used in options and derivatives analysis. Each Greek measures the sensitivity of a value in relation to a small change in an underlying parameter. Lambda measures the change in option premiums for a percentage point change in its implied volatility. When the lambda value is high, the price of an option will be more sensitive to small changes in volatility. Conversely, when lambda is low, changes in volatility will have less impact on the option's value.

Explaining 'Lambda'

Lambda is one of many Greeks used in determining and managing risk in options and derivatives trading and investing. The most common Greeks used are: Delta, which measures the rate of change of option value in response to changes in the price of the underlying instrument; Vega, which measures sensitivity to volatility; Theta, which measures the sensitivity of the value against the passage of time; Rho, which measures sensitivity to the interest rate and Gamma, which measures the rate of change in the Delta with respect to changes in the price of the underlying instrument.


Further Reading


The transformation of Escherichia coli with deoxyribonucleic acid isolated from bacterio-phage lambda dg.
www.cabdirect.org [PDF]
Isolated DNA of phage lambda dg [cf. XXVII, 1046] will transform galactose-negative strains of E. coli 'K12'. Transformation only occurs when the bacteria exposed to λdg DNA are simultaneously infected with ordinary λ. "The transforming agent appeared to be the entire λ dg …

Evaluation of nonnormal process capability indices using generalized lambda distributionEvaluation of nonnormal process capability indices using generalized lambda distribution
www.tandfonline.com [PDF]
Isolated DNA of phage lambda dg [cf. XXVII, 1046] will transform galactose-negative strains of E. coli 'K12'. Transformation only occurs when the bacteria exposed to λdg DNA are simultaneously infected with ordinary λ. "The transforming agent appeared to be the entire λ dg …

Backtesting lambda value at riskBacktesting lambda value at risk
www.tandfonline.com [PDF]
Isolated DNA of phage lambda dg [cf. XXVII, 1046] will transform galactose-negative strains of E. coli 'K12'. Transformation only occurs when the bacteria exposed to λdg DNA are simultaneously infected with ordinary λ. "The transforming agent appeared to be the entire λ dg …

What should the value of lambda be in the exponentially weighted moving average volatility model?What should the value of lambda be in the exponentially weighted moving average volatility model?
www.tandfonline.com [PDF]
Isolated DNA of phage lambda dg [cf. XXVII, 1046] will transform galactose-negative strains of E. coli 'K12'. Transformation only occurs when the bacteria exposed to λdg DNA are simultaneously infected with ordinary λ. "The transforming agent appeared to be the entire λ dg …

Discovering financial technical trading rules using genetic programming with lambda abstractionDiscovering financial technical trading rules using genetic programming with lambda abstraction
link.springer.com [PDF]
Isolated DNA of phage lambda dg [cf. XXVII, 1046] will transform galactose-negative strains of E. coli 'K12'. Transformation only occurs when the bacteria exposed to λdg DNA are simultaneously infected with ordinary λ. "The transforming agent appeared to be the entire λ dg …

Sample size and the accuracy of the generalized lambda distributionSample size and the accuracy of the generalized lambda distribution
www.tandfonline.com [PDF]
Isolated DNA of phage lambda dg [cf. XXVII, 1046] will transform galactose-negative strains of E. coli 'K12'. Transformation only occurs when the bacteria exposed to λdg DNA are simultaneously infected with ordinary λ. "The transforming agent appeared to be the entire λ dg …

Incremental cost-effectiveness ratios (ICERs): the silence of the lambdaIncremental cost-effectiveness ratios (ICERs): the silence of the lambda
www.sciencedirect.com [PDF]
Isolated DNA of phage lambda dg [cf. XXVII, 1046] will transform galactose-negative strains of E. coli 'K12'. Transformation only occurs when the bacteria exposed to λdg DNA are simultaneously infected with ordinary λ. "The transforming agent appeared to be the entire λ dg …

The Kappa and Lambda Antigens of Clostridium welchii.The Kappa and Lambda Antigens of Clostridium welchii.
www.cabdirect.org [PDF]
Isolated DNA of phage lambda dg [cf. XXVII, 1046] will transform galactose-negative strains of E. coli 'K12'. Transformation only occurs when the bacteria exposed to λdg DNA are simultaneously infected with ordinary λ. "The transforming agent appeared to be the entire λ dg …

Estimating the parameters of the generalized lambda distribution: which method performs best?Estimating the parameters of the generalized lambda distribution: which method performs best?
www.tandfonline.com [PDF]
Isolated DNA of phage lambda dg [cf. XXVII, 1046] will transform galactose-negative strains of E. coli 'K12'. Transformation only occurs when the bacteria exposed to λdg DNA are simultaneously infected with ordinary λ. "The transforming agent appeared to be the entire λ dg …

Change point analysis for generalized lambda distributionChange point analysis for generalized lambda distribution
www.tandfonline.com [PDF]
Isolated DNA of phage lambda dg [cf. XXVII, 1046] will transform galactose-negative strains of E. coli 'K12'. Transformation only occurs when the bacteria exposed to λdg DNA are simultaneously infected with ordinary λ. "The transforming agent appeared to be the entire λ dg …



FAQ


What is Lambda?

Lambda is the 11th letter of the Greek alphabet.

What does lambda represent in Greek?

In Greek, lambda represents the sound l.

How do you pronounce lambda in English?

The pronunciation of lambda in English is /læmˈdɑː/.

Where does lambda appear on a keyboard?

The key for lambda appears on a standard QWERTY keyboard between L and M.

What are some common uses for lambdas?

Some common uses include mathematical functions, such as λ and Λ, or representing an unknown value in statistics or computer science. It can also be used to denote wavelength or frequency when using SI units (e.g., "λ = 632 nm"). Another use is as a variable name; for example, if one wants to refer to the function formula_1 from calculus, they would write formula_2 instead of formula_3 because it looks like an upside-down capital letter "V" (the lowercase version of "v") with a line through it (the uppercase version of "v"), which resembles the Greek letter "Lambda". This usage originated among mathematicians before spreadig into popular culture via various programming languages and operating systems such as C++, Java and Microsoft Windows' shortcut syntax for variables containing spaces ("C:\Documents and Settings\User Name\My Documents") where codice_4 denotes the user's home directory. A similar convention has been adopted by many other operating systems that allow users to customize their environment; e.g., Linux users may set codice_5 to run a program named codice_6 from their home directory at login time by creating an appropriate file called codice_7 in their home directory containing lines such as cod

Leave a Reply

Your email address will not be published. Required fields are marked *