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ultima

 
(ŭl'tə-mə) pronunciation
n.
The last syllable of a word.

[Latin, feminine of ultimus, last. See ultimate.]


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The rate at which the vomma of an option will react to volatility in the underlying market. It is the third order derivative of the option value with respect to volatility, or the derivative of vomma with respect to the derivative of volatility.

Ultima is part of the group of measures known as the "Greeks" (other measures include delta, gamma and vega) which are used in options pricing.

Investopedia Says:

Ultima is useful to investors who are making options trades and take the vomma and vega into consideration, especially when implementing exotic options which may change format over the period of maturity. This metric is one of the inputs utilized in the Black-Scholes model.

 

Related Links:
Understanding price influences on options positions requires learning delta, theta, vega and gamma. Getting To Know The "Greeks"
These risk-exposure measurements help traders detect how sensitive a specific trade is to price, volatility and time decay. Using "The Greeks" To Understand Options
Options can be an excellent addition to a portfolio. Find out how to get started. The Basics Of Buying Options
Selling options can seem intimidating but with these tips, you can enter the market with confidence. The Ins And Outs Of Selling Options


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categories related to 'ultima'

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Random House Word Menu by Stephen Glazier
For a list of words related to ultima, see:

Ultima may refer to:

Contents


Linguistics

Games

Companies

  • Ultima Sports Ltd, a manufacturer of sports cars based in England
  • Ultima UK, a manufacturer of fishing line based in the United Kingdom
  • Ultima Foods, a division of Quebec based dairy company Agropur

Geography

  • Ultima Thule in medieval geographies may denote any distant place located beyond the "borders of the known world"
  • Ultima, Victoria, a town in Australia

Other uses

See also


 
 

 

Copyrights:

American Heritage Dictionary. The American Heritage® Dictionary of the English Language, Fourth Edition Copyright © 2007, 2000 by Houghton Mifflin Company. Updated in 2009. Published by Houghton Mifflin Company. All rights reserved.  Read more
Investopedia Financial Dictionary. Copyright ©2010, Investopedia.com - Owned and Operated by Investopedia US, A Division of ValueClick, Inc. All rights reserved.  Read more
Random House Word Menu. © 2010 Write Brothers Inc. Word Menu is a registered trademark of the Estate of Stephen Glazier. Write Brothers Inc. All rights reserved.  Read more
Wikipedia on Answers.com. This article is licensed under the Creative Commons Attribution/Share-Alike License. It uses material from the Wikipedia article Ultima Read more

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