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Basic Question 2 of 32
When an option is near-the-money, ______
II. vega is larger than the vega when the option is deep-out-of-the-money.
I. vega is larger than the vega when the option is deep-in-the-money.
II. vega is larger than the vega when the option is deep-out-of-the-money.
User Contributed Comments 5
| User | Comment |
|---|---|
| danlan2 | Vega is larger when an option is near the money. |
| mchu | Vega is the greatest for an option near-the-money. |
| tabulator | Vega is the bloody HUGEST for an option near-the-money!(in case you didn't get it) |
| fubar | thats pretty huge |
| birdperson | !BLOODY HUGEST! |
I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt
Learning Outcome Statements
interpret each of the option Greeks;
describe how a delta hedge is executed;
describe the role of gamma risk in options trading;
define implied volatility and explain how it is used in options trading.
CFA® 2025 Level II Curriculum, Volume 5, Module 32.