Vega Tends to Be High for Which of the Following

question 8

Multiple Choice

Vega tends to be high for which of the following

• A) At-the money options
• B) Out-of-the money options
• C) In-the-money options
• D) Options with a short time to maturity

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Definitions:

Monetary Compensation

Financial payment given to an individual or entity for loss, suffering, or injury as a form of restitution.

Rescission

The act of cancelling a contract and returning all involved parties to the positions they were in before the contract was made.

Innocent

Innocent refers to not being guilty of a crime or offense, or lacking knowledge of wrongdoing.

Void

Void refers to a legal declaration that a contract or transaction is null, having no effect or force in law, typically due to failing to meet certain legal requirements.