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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Kappa  

Definition 1.

The ratio of the dollar price change in the price of an option to a 1% change in the expected volatility.
 

Definition 2.

A value representing the expected change in the price of an option in response to a 1% change in the volatility of the underlying stock.
 

Definition 3.

Used in regression analysis, Kappa represents the ratio of the dollar price change in the price of an option to a 1% change in the expected price volatility.
 
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