📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      Which of the following measures is used to measure the

      sensitivity of the option’s price to changes in the volatility of the underlying stock?
      A Rho Correct Answer Incorrect Answer
      B Theta Correct Answer Incorrect Answer
      C Gamma Correct Answer Incorrect Answer
      D Delta Correct Answer Incorrect Answer
      E Vega Correct Answer Incorrect Answer

      Solution

      Stock options are affected by Greeks like delta, theta, gamma. Vega is not actually a Greek but we call Vega one of the ‘’Greeks’’ in option pricing. It measures the sensitivity of the option’s price to changes in the volatility of the underlying stock

      Practice Next
      More Financial Management Questions

      Relevant for Exams:

      ask-question