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vladimir2022 [97]
3 years ago
15

g Vega is defined as Group of answer choices the sensitivity of an option's price to changes in volatility. the change in the va

lue of the underlying asset for a dollar change in the call price. the percentage change in the value of an option for a 1% change in the value of the underlying asset. the change in the volatility of the underlying stock price. the change in the value of an option for a dollar change in the price of the underlying asset.
Business
1 answer:
nlexa [21]3 years ago
4 0

Answer: the sensitivity of an option's price to changes in volatility.

Explanation:

Vega us defined as the sensitivity of an option's price to changes in volatility. Vega denotes the amount by which the contract's price of an option changes due to the 1% change that occurs in the underlying asset's implied volatility.

Therefore, based on the scenario that has been explained above, the correct answer is the first option above.

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