Vega

Wiktionary, Creative Commons Attribution/Share-Alike License
  • noun. A measurement of the sensitivity of the value of an option to changes in the implied volatility of the price of the underlying product.
  • Word Usage
    "The notional value of AIG's derivatives book has decreased from more than $2 trillion at its peak to approximately $940bn now, with the gross "vega" - an industry measurement of volatility - on the remaining trades reduced by 75pc."
    Rhyme
    Words with the same terminal sound
    Degas  Noriega  Ortega  Sega  bodega