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What is the reason for undertaking a veg...

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题目

What is the reason for undertaking a vega hedging? To minimize the:

选项

A.possibility of counterparty default risk.

B.potential loss as a result of a change in the volatility of the underlying source of risk.

C.adverse effect due to the government regulation.

D.potential loss as a result of a large movement in the underlying source of risk.

答案

B

解析

Vega describes the rate of change of the value of a portfolio with respect to the volatility of the underlying asset.Vega描述了资产组合价值相对于基础资产波动率的变化率。