The Sensitivity of an Option's Value to a Change in the Standard

question 432

True/False

The sensitivity of an option's value to a change in the standard deviation of the return on the underlying asset is measured by the option vega

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Definitions:

Biased Manner

A way of acting or making decisions that is influenced by prejudices or partiality, rather than being fair or impartial.

Outgroup Members

Individuals who are perceived as not belonging to one's own group, often leading to biases or prejudgment against them due to perceived differences.

Attitude Polarization

The phenomenon where a disagreement becomes more extreme as the different parties consider evidence on the issue.

Informational Influence

Going along with the crowd because you think the crowd knows more than you do.