--%>

How is Vega completely different from Greeks

How is Vega completely different from Greeks?

E

Expert

Verified

Vega is completely differing from the other greeks since this is a derivative regarding a parameter and not a variable. It can be significant. This is perfectly acceptable to consider sensitivity to a variable that does vary, after all. Although, it can be dangerous to measure sensitivity to somewhat, as volatility, that is a parameter and may, for illustration, have been assumed to be constant. It would be internally inconsistent.

   Related Questions in Financial Management

  • Q : Difference between two tier market for

    Describe difference between the retail or client market and the wholesale or interbank market for foreign exchange?The market for foreign exchange can be distinguished as two-tier market. One tier is the wholesale or interbank market and the ot

  • Q : Explain in brief about financial ratio

    Explain in brief about financial ratio?

  • Q : Companies that would be capable to

    Write two examples of kinds of companies that would be capable to handle high debt levels.

  • Q : Describe the three major trend in

    Describe the three major trends which have prevailed in international business at the time the last two decades.The 1980s brought a quick integration of international capital & financial markets. Impetus for globalized financial markets prim

  • Q : Closed-end country funds trade at

    Why do you think closed-end country funds frequently trade at a premium or discount?CECFs trade at premium or discount since capital markets of the home & host countries are segmented, preventing cross-border arbitrage. If cross-border arbit

  • Q : What are the difficulties GARCH

    What are the difficulties GARCH contained?

  • Q : Empirical studies regarding factors

    Why do you think the empirical studies regarding factors affecting equity returns mainly showed which domestic factors were more significant than international factors, and, secondly, that industrial membership of firm was of little importance in forecasting t

  • Q : Appropriate demand of return for a

    How much more demand of return is appropriate for a share of common stock by risk-averse investors, when compared to a Treasury bill?

  • Q : When was quantitative finance domain of

    When was quantitative finance the domain of either economists or applied mathematicians?

  • Q : Legal and ethical obligations Compare

    Compare and contrast the ethical and legal obligations for a: (i) CFP practitioner (ii) member of the FPA (iii) a financial services professional.