What is the meaning of zeta?

Definition: The market value of an option, less its model value, using the ATM implied vol for the same expiration. Application:' zeta' is a measure of the importance of using the volatility smile, rather than only the ATM volatility.

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APABarry Goldsmith. (2010). zeta. Retrieved September 26, 2026, from http://smartdefine.org/zeta/definitions/1166785
ChicagoBarry Goldsmith. 2010. "zeta" http://smartdefine.org/zeta/definitions/1166785 (accessed September 26, 2026).
HarvardBarry Goldsmith 2010, zeta, Smart Define, viewed 26 September, 2026, <http://smartdefine.org/zeta/definitions/1166785>.
MLABarry Goldsmith. "zeta" 21 October 2010. Web. 26 September 2026. <http://smartdefine.org/zeta/definitions/1166785>
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