Vega Captures the Combined Effects of Time Decay and Volatility

question 1

True/False

Vega captures the combined effects of time decay and volatility.

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Definitions:

Dealer Market

A financial market mechanism wherein buy and sell transactions are made through a dealer, or market maker, rather than through a centralized exchange.

Auction Market

A marketplace where buyers and sellers enter competitive bids simultaneously, with the price determined through the interaction of these bids.

NASDAQ

A global electronic marketplace for buying and selling securities, as well as the benchmark index for U.S. technology stocks.

NYSE

The New York Stock Exchange (NYSE) is one of the largest stock exchanges in the world, where public companies' stocks are bought, sold, and traded.