The Vega of a ________ Is Highest When It Is_________

question 24

Multiple Choice

The vega of a ________ is highest when it is_________.

• A) call; deep in-the-money.
• B) put; deep out-of-the-money.
• C) call or put; far away-from-the-money.
• D) None of the above.

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Definitions:

Moving Average

A statistical technique used to smooth out short-term fluctuations and highlight longer-term trends in data.

Liquor Sales

The commercial activity of selling alcoholic beverages, often regulated by laws that vary widely across different jurisdictions.

Wholesaler

An intermediary entity in the distribution channel that buys goods in large quantities from producers and sells them to retailers or other businesses, but not directly to consumers.

Moving Average

A technique used in time series analysis that smooths data points to help identify trends by averaging a number of adjacent values over a specified period.