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Glossary > L > "Lambda" Definition

Lambda

The ratio of a change in the option price to a small change in the option volatility. It is the partial derivative of the option price with respect to the option volatility.

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Lambda \ The ratio of a change in the option price to a small change in the option volatility. It is the partial derivative of the option price with respect to the option volatility.

Lambda / the ratio of a change in the option price to a small change in the option volatility. it is the partial derivative of the option price with respect to the option volatility.