CFA CFA Level 1 CFA Level 1 Question of the Week – Portfolio Management

CFA Level 1 Question of the Week – Portfolio Management

  • Author
    Posts
    • Matt_AnalystPrep
      Participant
      Up
      6
      Down

      Which of the following “Greeks” measures the amount that an option contract’s price changes in reaction to a change in the implied volatility of the underlying asset?

      • A. Rho
      • B. Vega
      • C. Gamma
    • Matt_AnalystPrep
      Participant
      Up
      1
      Down

      The correct answer is B.

      Derivatives risk measures are also referred to as “Greeks.” Vega measures the sensitivity of derivatives value to the volatility of prices of underlying assets.  

Viewing 1 reply thread
  • You must be logged in to reply to this topic.