The sensitivity of an option's price to a one percent movement in implied volatility. The vega of a forex option is generally higher when its strike price is closer to at the money and when it has more time left until expiration. Even though vega is considered one of the option risk management "Greeks", it is the only sensitivity that is not actually a Greek letter. also called volatility sensitivity.
Browse by Subjects
See All Related Terms »

mortgage debenture
articles of partnership
Accounting Principles Board
foreign exchange rate
hidden economy