How is hedging need decreased by a gamma-neutral strategy
How is hedging requirement decreased by a gamma-neutral strategy?
Expert
Because costs can be large and because one wants to reduce exposure to model error it is natural to try to minimize the need to rebalance the portfolio more frequently. Because gamma is a measure of sensitivity of the hedge ratio Δ (delta) to the movement in the underlying, the hedging need can be decreased by a gamma-neutral strategy. It means buying or selling more options, not only the underlying.
What are those factors that common stockholders would consider while deciding how much cash dividends they want from corporation in which they have invested?
What does a dealer do in the OTC market? Financial trades are made in an over the counter market. Explain.
Can I get the answers for straight supply?
Example of Forward and Backward Equations.
Explain financial markets and why do they exist?
Janice Colangelo heads the Training Centre of the large HR Consulting firm EMT Consulting. The firm has three major departments: Recruitment, Training and Career Services. The Training Centre provides management training for employees of various businesses. Recruitment provides recruitment service
Give any benefits you can think of for any company to source new equity capital from foreign investors in addition to domestic investors. An enhancement in demand will normally increase the stock price and develop
Define the term correct delta with an example?
How is arbitrage argument estimated?
Illustrates example of Brownian motion?
18,76,764
1940749 Asked
3,689
Active Tutors
1439585
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!