Why are financial instruments like Futures & Options referred to as 'Derivatives'?

Their value is independent of any underlying asset. They are complex instruments only accessible to expert traders. They derive their value from an underlying asset using mathematical concepts of 'Derivatives'. They are derived from traditional banking practices.

What does the 'Delta' of an option represent?

The rate of change of the option's price over time. The probability of the option expiring in-the-money. The change in the option's premium for a given change in the underlying asset's price. The sensitivity of the option's price to changes in implied volatility.

How is 'Gamma' related to 'Delta' in options trading?

Gamma represents the inverse of Delta. Gamma measures the rate of change of Delta for a given change in the underlying asset's price. Gamma and Delta are independent of each other. Gamma is a fixed value, while Delta is variable.

Which of the following is considered a '2nd order derivative' in the context of options trading?

Delta Vega Theta Gamma

What type of traders frequently use derivative calculus to identify trading opportunities?

Swing Traders Day Traders Quantitative Traders (Quants) Value Investors