Currency Option Vega

Vega
Vega gauges volatility impact on the option premium. Vega (<;) is the sensitivity of the theoretical value of an option to a change in volatility. For instance, a Vega of 0.2 will generate a 0.2 percent increase in the premium for each percentage increase in the volatility estimate, and a 0.2 percent decrease in the premium for each percentage decrease in the volatility estimate. The option is traded for a predetermined period of time, and when this time expires, there is a delivery date known as the expiration date. A buyer who intends to exercise the option must inform the writer on or before expiration. The buyer's failure to inform the writer about exercising the option frees the writer of any legal obligation. An option cannot be exercised past the expiration date.
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Currency Options

Currency Option Delta

Currency Option Gamma

Currency Option Vega

Currency Option Theta