Answer: equal to Option 2.

## Explanation **Vega** measures the sensitivity of an option's price to changes in implied volatility. For European options with the same underlying, strike price, and time to expiration: - **Call and put options have the same vega** This is because: - Both calls and puts benefit from increased volatility - The vega formula is identical for both call and put options - Put-call parity relationship ensures that volatility affects both options equally Given: - Same underlying - Same strike price (100) - Same remaining maturity (1 month) - Same contract size (1,000 shares) The vega of Option 1 (call) is **equal to** the vega of Option 2 (put). Therefore, option B is correct: the vega of Option 1 is equal to Option 2.

Author: LeetQuiz Editorial Team