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ATM Vega-Vol Graph

Quantitative Finance Level 2

For an at-the-money option, which of the following best describes the graph of vega against volatility?

The right half of the bell-curve Horizontal line Straight line through the origin A smoothed out graph of \( \max( 0, \frac{1}{x-1}) \)

Excel in math and science

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by Calvin Lin

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