Explain How Vega Measures an Option’s Sensitivity to Changes in Implied Volatility

Vega is an option Greek that quantifies the change in an option's price for every one-percentage-point change in implied volatility. A high Vega means the option's premium is highly sensitive to IV fluctuations.

OTM options generally have a lower Vega than ATM options, but Vega is highest for options with a longer time to expiration, regardless of moneyness.