Demand pull and Gamma: Difference between pages

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''Economics - inflation.''
''Options analysis''


Demand pull inflation is inflation caused by an increase in demand in the market.
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.
:<span style="color:#4B0082">'''''Inflation - we now have both demand pull and cost push'''''</span>
 
:"In terms of how current inflationary trends differ from the causes of previous periods of high inflation, John Whittaker, economist at Lancaster University Management School, observes that energy prices were also a major driver of price rises in the 1970s.
 
:'However, demand that was suppressed by people being unable to work during the pandemic has been released, which means we now have both demand pull and cost push,' he explains.
 
:'The latter is not just down to rising prices – it has been exacerbated by supply chain bottlenecks.' ”
 
:''The Treasurer, Issue 1 of 2022 - March 2022 - p10.''




== See also ==
== See also ==
* [[Aggregate demand]]
* [[Delta]]
* [[Cost-push inflation]]
* [[Greeks]]
* [[Demand-pull inflation]]
* [[Economics]]
* [[Inflation]]
* [[Output]]
* [[Supply chain]]


[[Category:The_business_context]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]

Latest revision as of 15:15, 1 July 2022

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