Define the Term “Greeks” in Financial Derivatives.
The "Greeks" are a set of risk measures used in the options market to assess the sensitivity of an option's price to changes in various underlying factors. The primary Greeks are Delta, Gamma, Theta, Vega, and Rho.
Each Greek measures a specific risk exposure, such as Delta for the change in the underlying price, and Theta for time decay. Traders use the Greeks to manage and hedge the risk profile of their options portfolio.
