What is super hedging
What is super hedging?
Expert
Super hedging: In unfinished markets you cannot reduce all risk by classical dynamic delta hedging. But on occasion you can superhedge, it means that you construct a portfolio which has a positive payoff whatever occurs to the market.
Suppose today's settlement price on a CME DM futures contract is $0.6080/DM. You have a short position in one contract. Your margin account presently has a balance of $1,700. The next three days' settlement prices are $0.6066, $0.6073, & $0.5989. Compu
Illustrates an example relates with risk that defined in mathematical terms.
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