How is Vega completely different from Greeks
How is Vega completely different from Greeks?
Expert
Vega is completely differing from the other greeks since this is a derivative regarding a parameter and not a variable. It can be significant. This is perfectly acceptable to consider sensitivity to a variable that does vary, after all. Although, it can be dangerous to measure sensitivity to somewhat, as volatility, that is a parameter and may, for illustration, have been assumed to be constant. It would be internally inconsistent.
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