New FLASH SALE Dhamaka - Flat 60% Off on All Courses

    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