SIE practice questionmediumGreeks basics
Vega measures an option's sensitivity to changes in:
- AVolatility of the underlying security✓ Correct answer
- BInterest rates
- CStock price
- DTime decay
Explanation
Why A — Volatility of the underlying security
Vega reflects how much an option’s price changes with volatility. Sensitivity to price, rates, or time is measured by other Greeks.
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