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When the volatility of a stock increases from 30% to 32%, the value of an option on the stock increases from $2.00 to $2.40. What
When the volatility of a stock increases from 30% to 32%, the value of an option on the stock increases from $2.00 to $2.40. What is the vega of the option?
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$0.10 per 1% change in volatility
$0.30 per 1% change in volatility
$0.40 per 1% change in volatility
$0.20 per 1% change in volatility
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