Vega Is Defined as

question 55

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 1% 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:

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