Explain that Gamma hedging more precise
How is Gamma hedging more precise form of hedging that theoretically eliminates?
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Gamma hedging is a more precise form of hedging which theoretically eliminates these second-order effects. Classically, one hedges one, say, exotic, contract along with a vanilla contract and the underlying. The quantities of the vanilla and the underlying are selected so as to make both the portfolio delta and the portfolio gamma immediately zero.
Who measured risk as coherent, in finance theory?
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What is a Coherent Risk Measure?
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