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Negative gamma put option liability
This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Negatice material may be challenged negative gamma put option liability removed. (November 2015) ( Learn how and when to remove this template message)In finance, a put or put option is a stock market device which gives the owner of a put the right, but not the obligation, to sell an asset (the underlying), at a specified price (the strike), by a predetermined date (the expiry or maturity) to a given party (the seller of the put).
Please click hereTo view all translated materals including this page, select Japan from the country navigator on the bottom of this page. Back to English. MathWorks Machine TranslationThe automated translation of this page is provided by a general purpose third party translator tool.MathWorks does not warrant, and disclaims all liability for, the accuracy, suitability, or fitness for purpose of the translation. Liahility example creates a three-dimensional plot showing how gamma changes relative to price for a Black-Scholes option.Recall that gamma is the second derivative of the option price relative to the underlying security price.
The plot in this example shows a three-dimensional surface whose z-value is the gamma of an option as price ( x-axis) and time ( y-axis) vary. The plot adds yet a fourth dimension by showing option delta (the firs.