Vega is always expressed as a positive number because increasing implied volatility typically increases an option’s value. Therefore, the higher an option’s vega, the more sensitive it will be to …
Traders considering an options position must weigh the Vega against their own volatility forecast to judge attractiveness. For volatility-focused strategies like straddles or strangles, high Vega is desirable to maximize …
The relevant cost is the addition of the loading and unloading charge of goods when it’s consigned or sold to the opposite party in a business. This, in actuality, is …
Therefore, the machine running costs will not change, so are not relevant to the decision. Sale proceeds – this is a relevant cost as it is a cash inflow which …
