Vega Hedging Is Required Only in Options Portfolios

question 32

True/False

Vega hedging is required only in options portfolios.

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Definitions:

Protestant Ethic

A concept relating to the values of hard work, thrift, and efficiency in one's worldly calling, attributed to the rise of the capitalist economy, particularly associated with the teachings of Protestantism.

Worldly Affairs

Matters concerning the temporal world as opposed to spiritual or religious matters; often related to international relations or global issues.

Capitalism

An economic system characterized by private or corporate ownership of goods and services, and where investments, production, and distribution of goods are determined by competition in a largely unregulated marketplace.

Conflict Theory

A sociological perspective that views social life as a competition, with social order maintained by domination and power, rather than consensus.