AdvancedMultiple choice
What is the vega of an up-and-out call with the stock well above the strike and not far below the barrier?
- APositive, like every long option, because more volatility always adds optionality
- BNegative
- CExactly zero, since the barrier caps the payoff
- DPositive only if the barrier is monitored continuously and negative if it is monitored daily
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