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| ''Convertible bonds''. | | ''Options analysis''. |
| The total current market value of the ordinary shares (or other securities) for which each convertible bond may be exchanged (at the bondholder's option). | | The rate of change of an option’s delta, with respect to changes in the market price of the underlying asset. |
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| For example, if each convertible bond may be exchanged for 40 ordinary shares, and the ordinary shares are currently trading in the market at £2 each, then the conversion value = 40 x £2 = £80.
| | This is the second derivative of the option’s value, with respect to changes in the market price of the underlying asset. |
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| == See also == | | == See also == |
| * [[Convertible bonds]] | | * [[Delta]] |
| | * [[Greeks]] |
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Revision as of 14:19, 23 October 2012
Options analysis.
The rate of change of an option’s delta, with respect to changes in the market price of the underlying asset.
This is the second derivative of the option’s value, with respect to changes in the market price of the underlying asset.
See also
