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{{anat|PB}} | |||
As all portfolio managers who have ever bought an apartment know, in the immortal words of Californian songstress Suzanne Luca: | As all portfolio managers who have ever bought an apartment know, in the immortal words of Californian songstress Suzanne Luca: | ||
::My name is [[Vega]]<br> | |||
My name is [[Vega]]<br> | ::I live on the second floor<br> | ||
I live on the second floor<br> | ::I lives upstairs from you<br> | ||
I lives upstairs from you<br> | ::Yes, I think I've seen you before. | ||
Yes I think I've seen you before. | |||
[[Vega]] is, technically, “the rate of change in volatility of an option”, meaning the greater the volatility the more vega you have. [[Volatility]] is affected by a number of things, but most commonly by [[leverage]] - or borrowing money from the bank to make more of a speculative investment than you can actually afford. Hence the smarty-pants reference to apartments for, if you’ve ever bought one with the assistance of [[mortgage]] finance, you’ve amped up your [[vega]]. | [[Vega]] is, technically, “the rate of change in volatility of an option”, meaning the greater the volatility the more vega you have. [[Volatility]] is affected by a number of things, but most commonly by [[leverage]] - or borrowing money from the bank to make more of a speculative investment than you can actually afford. Hence the smarty-pants reference to apartments for, if you’ve ever bought one with the assistance of [[mortgage]] finance, you’ve amped up your [[vega]]. | ||