G

1 GAAP

Generally Accepted Accounting Principles (GAAP) representing the standard rules and procedures that accountants follow when reporting financial information in limited states.

2 Gamma

The change in delta when the price of the underlying asset changes by one unit. Based upon the call option formula defined in option pricing model [see also Option pricing equation]. The mathematic result can be defined as

3 Gamma-Neutral Portfolio

A portfolio with a gamma of zero.

4 GAP

Dollar value of rate-sensitive assets (RSAs) minus the dollar value of rate-sensitive liabilities (RSLs). Another way of comparing RSAs and RSLs is the GAP Ratio, defined as:

5 Gap Option

An option where the option owner has the right to exercise the option at strike price K₁ if the stock price exceeds (or, depending on the option, is less than) the price K₂. For an ordinary option, K₁ = K₂..

6 GARCH Model

Generalized autoregressive conditional hetroske-dasticity (GARCH) is a model for forecasting volatility where...