Definition, Meaning & Synonyms
convexity
noun
/kənˈvɛksɪti/
Definition
The state of being curved outward, often used in geometry and finance.
Examples
- The convexity of the lens allowed for a clearer image.
- In finance, higher convexity indicates less sensitivity to interest rate changes.
Meaning
Convexity refers to the property of a shape being bulged or rounded outward. In geometry, it describes surfaces or shapes that curve away from a central point. In finance, it relates to the curvature of the price-yield relationship of a bond.
Synonyms
- Curvature
- Bulge
- Arch
