Vega Is Defined as

question 4

Multiple Choice

Vega is defined as

• A)the change in the value of an option for a dollar change in the price of the underlying asset.
• B)the change in the value of the underlying asset for a dollar change in the call price.
• C)the percentage change in the value of an option for a one percent change in the value of the underlying asset.
• D)the change in the volatility of the underlying stock price.
• E)the sensitivity of an option's price to changes in volatility.

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Definitions:

Components

Components are the distinct parts or elements that make up a whole system, object, or complex structure.

Visual

Refers to anything related to sight or seeing, often used in the context of graphic elements, images, or design in communications and media.

Accurate

Describes information or results that are correct and precise, without any errors.

Guidelines

A set of principles provided to inform behavior or steer decisions and actions in specific contexts.