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Definition of Delta hedge
A dynamic hedging strategy using options with continuous adjustment of the number of options
The ratio of volatility of the portfolio to be hedged and the return of the volatility of the
A protection against borrower fallout risk in the mortgage pipeline.
Strategies that involve a position in an option as well as a position in the
Also called the hedge ratio, the ratio of the change in price of a call option to the change in price of the
The rate of change of the price of a derivative security relative to the
The value of the portfolio is not affected by changes in the value of the asset on which the
A transaction that reduces the risk of an investment.
A securities transaction that reduces or offsets the risk on an existing
A fund that may employ a variety of techniques to enhance returns, such as both buying and
Excess inventories kept on hand as a buffer against contingent
A portfolio consisting of the long position in the stock and the short position in the call
The purchase of a futures contract(s) in anticipation of actual purchases in the cash market. Used
The use of borrowing and lending transactions in foreign currencies to lock in the
A financial result in which the profit and loss from the underlying asset and the hedge position
Related: short hedge.
The sale of a futures contract(s) to eliminate or lessen the possible decline in value ownership of
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