What are different variables and parameters of Vega Hedging
What are distinction variables and parameters of Vega Hedging?
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The distinction among variables are underlying asset time and price and parameters are dividend yield, volatility and interest rate is extremely significant here. This is justifiable to rely on sensitivities of prices to variables, other than usually not sensitivity to parameters. To find around this problem this is possible to independently model volatility, as variables themselves. In this way it is possible to make a consistent theory.
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Describe triangular arbitrage? What is a condition which will give increase to a triangular arbitrage opportunity?Triangular arbitrage is the procedure of trading out of the U.S. dollar in a second currency, then trading it for a third currency
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