Q-22.3(b) True or false: A volatility swap exchanges a fixed vega for a realized vega | Financial Risk Manager Part 1 Quiz - LeetQuiz
Financial Risk Manager Part 1
Explanation:
False. A volatility swap exchanges a fixed level of volatility for realized volatility. Vega is an option sensitivity measure, not the payoff variable of the swap.
Get started today
Ultimate access to all questions.
Q-22.3(b) True or false: A volatility swap exchanges a fixed vega for a realized vega