Financial Derivative Terms - G

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Gamma: The rate of change in the value of delta per 100% change in the current value of the underlying asset.
Garman Kohlhagen Model: A currency option pricing calculation for evaluating European style options on the spot foreign exchange by subtracting the present value of the continuous cash flows from the price of the underlying instrument.
Global Bond: A bond issued by a non-European company for sale in Europe and is eligible to trade in both the domestic and Euromarket via special transferability arrangements. Global bonds can be issued in the same currency as the country of issuance and are usually issued by entities that have high credit ratings.
Greeks: Greeks are various risk statistics (delta, gamma, theta, rho and vega) that measure sensitivities of an option’s value to certain variables and are mostly used for hedging purposes.
Guts: The long guts is a neutral strategy in options trading which involves the simultaneous buying of an in-the-money call option and an in-the-money put option on the same underlying and having the same expiry date.

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