Lambda is 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.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). lambda. Retrieved September 20, 2026, from http://smartdefine.org/lambda/definitions/1156873 |
| Chicago | Barry Goldsmith. 2010. "lambda" http://smartdefine.org/lambda/definitions/1156873 (accessed September 20, 2026). |
| Harvard | Barry Goldsmith 2010, lambda, Smart Define, viewed 20 September, 2026, <http://smartdefine.org/lambda/definitions/1156873>. |
| MLA | Barry Goldsmith. "lambda" 21 October 2010. Web. 20 September 2026. <http://smartdefine.org/lambda/definitions/1156873> |