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Explain gamma to me as you would explain it to your grandmother

And the answer was:

I explained, but in Urdu, given my grandmother does not speak English. The interviewer seemed a little embarrassed but laughed it off.

Additional information

I went through to the final stage interview. This was asked for a global risk reporting role.

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AUTHORAnonymous Insider Comment
  • Mr
    Mr old
    29 June 2010

    Gamma stocks not around anymore then?

  • Ro
    Rohan Bobysson
    23 June 2010

    My grand-mother was an option trader :o

  • Bi
    Bill
    23 June 2010

    1- third letter of the Greek alphabet that became the C latin letter.
    2- high energy electromagnetic radiation.
    3- her cart changes to price changes.

  • ph
    phlakes
    19 June 2010

    Very Smart response..

  • sa
    saby
    17 June 2010

    Gamma is the option's sensitivity to change in the sensitivity of the option value to changes in the underlying asset price or second derivative of delta ..... Surely grand mother know all about risk.

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