Which of the Following Positions Has a Negative Vega

question 52

Multiple Choice

Which of the following positions has a negative vega?

• A)Receive fixed and pay floating LIBOR-based interest rate swap contract
• B)Short cattle futures contract
• C)Receive floating,pay fixed LIBOR-based forward rate agreement
• D)Long Apple,Inc.put option
• E)Short S&P 500 index call option

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Definitions:

Psychologist

A professional specializing in the study of the mind and behavior, often engaged in assessing, diagnosing, and treating mental health issues.

Intentionally Vague

A strategic ambiguity in communication used to avoid revealing explicit details or to keep options open.

Rorschach Inkblots

A psychological test using symmetrical inkblot patterns to analyze a person's perception and emotional functioning.

Interpretations

The process of assigning meaning to information that has been received, often influencing perception and decision-making.