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:

Jung

Carl Jung, a Swiss psychiatrist and psychoanalyst who founded analytical psychology, known for his theories of the collective unconscious, archetypes, and dream analysis.

Self-System

A conceptual framework regarding how an individual organizes their perceptions, attitudes, and values regarding themselves.

Freudian Psychology

Freudian Psychology is a theory of the human psyche developed by Sigmund Freud, which posits that unconscious desires and motives shape individual behavior and personality.

Motivational Research

A type of consumer research that focuses on underlying psychological drivers of consumer behavior, including desires, needs, and motivations.