Question

g Vega is defined as Group of answer choices the sensitivity of an option's price to changes in volatility. the change in the value of the underlying asset for a dollar change in the call price. the percentage change in the value of an option for a 1% change in the value of the underlying asset. the change in the volatility of the underlying stock price. the change in the value of an option for a dollar change in the price of the underlying asset.

Answer 1

Answer: the sensitivity of an option's price to changes in volatility.

Step-by-step explanation:

Vega us defined as the sensitivity of an option's price to changes in volatility. Vega denotes the amount by which the contract's price of an option changes due to the 1% change that occurs in the underlying asset's implied volatility.

Therefore, based on the scenario that has been explained above, the correct answer is the first option above.