Define an example to Hedge
Define an example to Hedge?
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You buy a call option, this could go up or down in value depending upon whether the underlying goes up or down. Therefore now sell some stock short. When you sell the right amount short then any rises or falls in the stock position will balance the falls or increases in the option, decreasing risk.
What is shadow Greeks?
Otobai Motor Company is currently paying a dividend of $1.40 per year. The dividends are expected to grow at a rate of 18% for the next three years and then a constant rate of 5% thereafter forever. What is the vlaue of its current stock price? Assuming that the discount rate is 10%.{Hint: pages 84-
What is Crash Metrics?
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Who described the criteria which make a risk measure coherent?
How is quantity of model risk dependency on vega hedge?
Illustrates that the put–call parity is a model-independent relationship.
How is Sortino Ratio Work?
Illustrates an example of Arbitrage?
Why is Crash Metrics very robust?
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