Explain that Gamma hedging more precise
How is Gamma hedging more precise form of hedging that theoretically eliminates?
Expert
Gamma hedging is a more precise form of hedging which theoretically eliminates these second-order effects. Classically, one hedges one, say, exotic, contract along with a vanilla contract and the underlying. The quantities of the vanilla and the underlying are selected so as to make both the portfolio delta and the portfolio gamma immediately zero.
Remark on the following statement: "As the U.S. imports more than it exports, it is essential for the U.S. to import capital from foreign countries to finance its present account deficits."The statement presupposes that the U.S. present account
Explain different types of hedge.
What are the interest areas for financial managers when they go through pro forma financial statements?
What are the factors responsible for the recent surge in international portfolio investment?
What did you meant by the Value of a Contract? Answer: Value usually implies the theoretical cost of building up a new contract by simpler products, such as replicat
What are tha factors responsible for the recent surge in investment portfolio investment???
In integrated world financial market, a financial crisis in a country can be quickly transmitted to other countries, causing global crisis. What sort of measures would you suggest to stop the recurrence of Asia-type crisis? Q : What is Coherent Measure What is What is Coherent Measure?
What is Coherent Measure?
Explain the tool of Discretization methods in Quantitative Finance.
Suppose a currency swap wherein two counterparties of comparable credit risk each borrow at the best rate obtainable, yet the nominal rate of one counterparty is greater than the other. After the primary principal exchange, is the counterparty i.e. required t
18,76,764
1948574 Asked
3,689
Active Tutors
1428691
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!