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3I0-012 · Question #40

3I0-012 Question #40: Real Exam Question with Answer & Explanation

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Question

The vega of an option is:

Options

  • AThe sensitivity of the option value to changes in interest rates
  • BThe sensitivity of the option value to changes in implied volatility
  • CThe sensitivity of the option value to changes in the time to expiry
  • DThe sensitivity of the option value to changes in the price of the underlying

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