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Basic Question 3 of 13
Which statement about vega is true?
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.
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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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.