Explain that Gamma hedging more precise
How is Gamma hedging more precise form of hedging that theoretically eliminates?
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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.
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foreign countries to finance its current account deficits
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Assume that you inherited some money. A friend of yours is working as an unpaid intern at a local brokerage firm, and her boss is selling securities that call for 4 payments of $50 (1 payment at the end of each of the next 4 years) plus an extra payment of $1,000 at the end of Year 4. Your friend sa
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