What is exact way of traders to use the gamma to calculate
What is the exact way of traders to use the gamma to calculate?
Expert
Traders use the gamma to calculate how much they will have to rehedge by when the stock moves. The stock moves with $1 so the delta changes by anything the gamma is. But it is only an approximation. There delta may change by more or less than it, especially when the stock moves by a larger amount, or say the option is close to the expiration and strike. Therefore, the use of speed in a higher-order is Taylor series expansion.
What are the characteristics of calibration?
Explain stochastic volatility.
Assume that the treasurer of IBM contains an extra cash reserve of $1,000,000 to invest for six months. The six-month interest rate is 8% per annum in the U.S. and 6% per annum in Germany. Now, the spot exchange rate is DM1.60 per dollar and the six-month forw
Explain financial markets and why do they exist?
If we can’t measure calibration parameter how can we choose on its value?
What is bird in the hand theory of cash dividends?
Illustrates an example of distribution of maxima and minima in Extreme Value Theory?
Explain the reasons of Quants to like, close form solution?
Define the term correct delta with an example?
In brief discuss the cause & the solution(s) to the international bank crisis involving less developed countries.The international debt crisis started on August 20, 1982 while Mexico asked more than 100 U.S. and foreign banks to forgive its
18,76,764
1956750 Asked
3,689
Active Tutors
1437419
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!