• Tim Xiao deposited Risk Sensitivity Introduction in the group Group logo of Business ManagementBusiness Management on Humanities Commons 5 years, 1 month ago

    Risk sensitivities, also referred to as Greeks, are the measure of a financial instrument’s value reaction to changes in underlying factors. The value of a financial instrument is impacted by many factors, such as interest rate, stock price, implied volatility, time, etc. Sensitivities are risk measures that are more important than fair values.