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Vega

Vega (ν) – Measures Volatility Sensitivity

February 21, 2025 by webmaster@emaster.in
Vega measures how much an option’s price changes with a 1% change in implied volatility (IV). Higher Vega means an option is highly sensitive to changes in volatility, while lower Vega means the option is less affected by volatility swings. Options tend to become expensive when volatility is high and cheap when volatility is low. ... Read more
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