Answer: Vega is greatest for at-the-money options with long maturities.

## Explanation Let's analyze each option: **A. Theta tends to be large and positive when buying at-the-money options.** - **False**: Theta measures time decay and is typically negative for long option positions (buying options), as options lose value over time. Theta is most negative for at-the-money options. **B. Gamma is greatest for in-the-money options with long maturities.** - **False**: Gamma is highest for at-the-money options, not in-the-money options. Gamma measures the rate of change of delta and peaks when options are at-the-money. **C. Vega is greatest for at-the-money options with long maturities.** - **True**: Vega measures sensitivity to volatility changes. It is highest for at-the-money options with long maturities because these options have more time value and are most sensitive to volatility changes. **D. Delta of deep in-the-money put options tends toward +1.** - **False**: Delta for deep in-the-money put options tends toward -1, not +1. Put options have negative delta values, with deep in-the-money puts approaching -1. Therefore, the correct answer is **C** as it accurately describes the behavior of Vega in options pricing.

Author: LeetQuiz .