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Basic Question 3 of 13

Which statement about vega is true?

A. Vega is a third-order effect of a change in option prices for the underlying.
B. Vega is applicable to options as well as portfolios that contain options.
C. Vega is analogous to the convexity of a fixed-income security.

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You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu

Colin Sampaleanu

Learning Outcome Statements

describe sensitivity risk measures and scenario risk measures and compare these measures to VaR;

demonstrate how equity, fixed-income, and options exposure measures may be used in measuring and managing market risk and volatility risk;

describe the use of sensitivity risk measures and scenario risk measures;

describe advantages and limitations of sensitivity risk measures and scenario risk measures;

CFA® 2025 Level II Curriculum, Volume 5, Module 41.