Vega hedging: Difference between revisions
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imported>Doug Williamson m (Spacing 14/8/13) |
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* [[Vega neutral]] | * [[Vega neutral]] | ||
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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.
