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+752 Part VI: Measuring and Trading Volatility 
+The above example assumed that the stock was making instantaneous changes 
+in price. In reality, of course, time would be passing as well, and that affects the vega 
+too. Table 37-2 shows how the vega changes when time changes, all other factors 
+being equal. 
+Example: In this example, the following items are held fixed: stock price (50), strike 
+price (50), implied volatility (70%), risk-free interest rate (5%), and dividend\(0). But 
+now, we let time fluctuate. 
+Table 37-2 clearly shows that the passage of time results not only in a decreas­
+ing call price, but in a decreasing vega as well. This makes sense, of course, since one 
+cannot expect an increase in implied volatility to have much of an effect on a very 
+short-term option - certainly not to the extent that it would affect a LEAPS option. 
+Some readers might be wondering how changes in implied volatility itself would 
+affect the vega. This might be called the "vega of the vega," although I've never actu­
+ally heard it referred to in that manner. The next table explores that concept. 
+Example: Again, some factors will be kept constant - the stock price (50), the time 
+to July expiration (3 months), the risk-free interest rate (5%), and the dividend (0). 
+Table 37-3 allows implied volatility to fluctuate and shows what the theoretical price 
+of a July 50 call would be, as well as its vega, at those volatilities. 
+Thus, Table 37-3 shows that vega is surprisingly constant over a wide range of 
+implied volatilities. That's the real reason why no one bothers with "vega of the vega." 
+Vega begins to decline only if implied volatility gets exceedingly high, and implied 
+volatilities of that magnitude are relatively rare. 
+One can also compute the distance a stock would need to rise in order to over­
+come a decrease in volatility. Consider Figure 37-1, which shows the theoretical price 
+TABLE 37-2 
+Implied Time Theoretical 
+Stock Price Volatility Remaining Call Price Vega 
+50 70% One year 14.60 0.182 
+Six months 10.32 0.135 
+Three months 7.25 0.098 
+Two months 5.87 0.080 
+One month 4.16 0.058 
+Two weeks 2.87 0.039 
+One week 1.96 0.028 
+One day 0.73 0.010