28 Mar 2014
Vomma, Vanna, Theta, Rho… these sound like the names of people who lived during the times of the ancient Greek empire. Yet, they had a place in a March 19 ISCA Mingles session titled “How I Learnt to Stop Worrying and Love the Option”. Conducted by KEE+ founder Lawrence Ho, the informative session took on a light-hearted air from the start as he simplified the complexities normally associated with stock options and made them digestible for the enthusiastic investor who wants his investment portfolio expanded.
Mr Ho discussed the distinctions between the call and put options, spotting and valuing options, and provided a quick discourse as well as examples of swaps, structured deposits, bonds and FX deals. He shared information on mathematical finance, including quantities representing the sensitivity of the price of derivatives including 1st order Greeks such as Delta, Vega, Theta, Rho and Gamma, as well as 2nd order Greeks such as Speed, Charm, Color, Vomma and Vanna. Participants realised that Greek names still have a relevant role to play today. As to how they came about this knowledge, they had Mr Ho to thank as he proved to be a fun and engaging presenter who helped them gain a better understanding of the topic.
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