gamma

/ˈɡæmə/
noun
  1. The third letter of the Greek alphabet (Γ, γ).
    • She learned to write gamma in her Greek language class.
    • In physics, gamma represents the photon or gamma ray.
    • The Greek letter gamma is often used in mathematics and science.
  2. A type of radiation, called gamma rays, which are high-energy electromagnetic waves.
    • Scientists study gamma rays to learn about distant stars.
    • The explosion released a burst of gamma radiation.
    • Gamma rays are used in cancer treatment to kill tumor cells.
  3. A measure of the rate of change in an option's price relative to the underlying asset's price, used in finance.
    • Understanding gamma is important for options trading.
    • The trader calculated the gamma of the option to manage risk.
    • High gamma means the option's price is very sensitive to stock price changes.