easy · Quantitative Finance
When using Newton's method to find the implied volatility of an option, the update step is x_n+1 = x_n - (f(x_n))/(f'(x_n)).
In this financial context, what common 'Greek' parameter serves as the derivative f'(x_n) in the denominator?
- Delta
- Gamma
- Vega
- Theta
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