Other approximations There are also other approximations that use delta, gamma (Γ) and theta (Θ) in valuing the portfolio.
{"Image DocumentName": "Other approximationsThere are also other approximations that use delta, gamma (\u0393) and theta (\u0398) in valuing the portfolio.", "Image ImageDescription": "By using summary statistics, such as delta and gamma, the computational difficulties associated with a full valuation can be reduced. Approximations should be periodically tested against a full revaluation for the purpose of validation. When deciding between full or partial valuation, there is a trade- off between the computational time and cost versus the accuracy of the result. The Black-Scholes valuation is the most precise, but tends to be slower and more costly than the approximating methods.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}