Lambda 
 • The ratio of a change in the option price to a small change in the option volatility. It is the partial derivative of the option price with respect to the option volatility. 
 • Is an option term sometimes used as a synonym for vega, kappa, or sigma. See Vega. 

 Embedded terms in definition 
 Change Derivative Kappa Option price Option Sigma Vega Volatility


 Referenced Terms 
 Kappa: The ratio of the dollar price change in the price of an option to a 1% change in the expected price volatility.Is an option term sometimes used as a synonym for vega, Lambda or sigma. See Vega.

 Sigma: Is an option term sometimes used as a synonym for vega, Lambda or kappa. See Vega.
