Why option A is not the correct answer??
vega bhi to volatility he measure krta hai
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Ans C?
YES!!
They are asking about the sd. That how much it will be different from expected return. Volatility is measured by sd. Vega is sensitive of derivative value to the price of underlying asset. They haven’t ask that.
Take an example you have expecting a ret of 10% and how different it will be from 10 you will measure it via sd say 1 or 2 sd.