What Does Vega Measure

question 5

Multiple Choice

What does vega measure?

• A) The rate of change of delta with the asset price
• B) The rate of change of the portfolio value with the passage of time
• C) The sensitivity of a portfolio value to interest rate changes
• D) None of the above

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Definitions:

Spongy Bone

Spongy bone, also known as cancellous bone, is less dense bone that is found at the ends of long bones and in the inner layers of other bones, characterized by a porous structure.

Diaphysis

The shaft or central part of a long bone, typically cylindrical in shape and containing the marrow cavity.

Epiphyseal Lines

Remnants of the epiphyseal plate in long bones, signifying the end of bone growth in length.

Articular Cartilage

A soft, white substance that envelops the ends of bones at their joint intersections, minimizing friction and cushioning impacts.