alleryStart learning →Which Greek is most important for an at-the-money straddle?
AVega
BRho
CCharm
DSpeed
Answer & Solution
Correct answer: A. Vega
An at-the-money straddle's value depends heavily on changes in volatility, which vega measures.
Keep practising Option (Finance)
Browse all Option (Finance) questions for CA Final, or explore more Strategicfinancialmanagement topics.
Related questions
When is charm especially useful for a delta-hedger?Speed measures the change in gamma with respect to what?Which Greek is also known as vega convexity?Which Greek is called delta decay?Gamma is classed as which kind of Greek?Which Greek measures sensitivity to the interest rate?Which Greek measures the time decay of an option?What happens to call and put values when volatility rises?