Ultima is the rate at which the vomma of an option reacts to volatility in the underlying asset. It is a third order derivative of the option value with respect to volatility. Ultima is a derivative of vomma, which is a derivative of vega. Ultima is part of the group of measures known as the Greeks which are used in option pricing and analysis. Other measures include delta, gamma, rho, and theta.
Click to rate this post!
[Total: 0 Average: 0]