Vega Is Defined as

question 55

Multiple Choice

Vega is defined as

• A) the change in the value of an option for a dollar change in the price of the underlying asset.
• B) the change in the value of the underlying asset for a dollar change in the call price.
• C) the percentage change in the value of an option for a 1% change in the value of the underlying asset.
• D) the change in the volatility of the underlying stock price.
• E) the sensitivity of an option's price to changes in volatility.

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Definitions:

Panic Disorder

A psychiatric disorder characterized by unexpected and repeated episodes of intense fear accompanied by physical symptoms that may include chest pain, heart palpitations, shortness of breath, dizziness, or abdominal distress.

Somatoform Disorder

A mental disorder characterized by physical symptoms that have no identifiable physical cause, often linked to psychological factors.

Hypochondria

An excessive preoccupation with and worry about having a serious illness, despite medical reassurance and lack of diagnostic evidence.

Emergency Room

A medical treatment facility specializing in emergency medicine, the acute care of patients who present without prior appointment.