When the Volatility of an Option Increases from 30% to 32

question 11

Multiple Choice

When the volatility of an option increases from 30% to 32% the value of the option increases from $2.00 to $2.40. What is the vega of the option

• A) 0.20 dollars per %
• B) 0.50 dollars per %
• C) 0.80 dollars per %
• D) 2.00 dollars per %

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Definitions:

Animal Studies

Research involving the use of non-human animals to explore biological, psychological, or social processes that may be relevant to human behavior.

Schizophrenia

A psychiatric disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.

Neurotransmitter Activity

The function of chemical messengers in the nervous system that transmit signals across synapses from one neuron to another.

Genetic Vulnerability

The increased likelihood of developing a disorder based on the genes inherited from one's parents.