Vega hedging: Difference between revisions

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imported>Doug Williamson
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* [[Vega neutral]]
* [[Vega neutral]]
* [[Volatility]]
* [[Volatility]]
[[Category:Financial_products_and_markets]]

Latest revision as of 20:15, 27 June 2022

The hedging of an option position against changes in the volatility of the market price of the underlying asset.

A vega hedge is established by buying or selling an appropriate amount of another derivative instrument, for example other options.


See also