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:

Stimulated

The state of being aroused, activated, or energized by external or internal factors.

Motivated

Having a driving desire or willingness to take action towards a goal or objective.

Communication Codes

Systems of signs, symbols, gestures, or language used to convey messages within a particular group or context.

Conveying Meaning

The process of transmitting information, ideas, or feelings so that they are successfully understood by others.