What is exact way of traders to use the gamma to calculate
What is the exact way of traders to use the gamma to calculate?
Expert
Traders use the gamma to calculate how much they will have to rehedge by when the stock moves. The stock moves with $1 so the delta changes by anything the gamma is. But it is only an approximation. There delta may change by more or less than it, especially when the stock moves by a larger amount, or say the option is close to the expiration and strike. Therefore, the use of speed in a higher-order is Taylor series expansion.
What are the modern approaches uses for forecast volatility and model?
Normal 0 false false
When the quantitative finance is disrepute?
what are factors responsible for the recent surge in international portfolio investment
How does AR (accounts receivable) factoring work? What are the risks and benefits to the two parties involved?
How is the risk into portfolio measured in Crash Metrics?
Why are most futures positions closed out through a reversing trade instead of held to delivery?In forward markets, about 90 percent of all contracts that are primarily established result in the short making delivery to the long of the asset und
What is Information Ratio?
Explain Poisson process in Brownian motion.
Explain Modern Portfolio.
18,76,764
1935628 Asked
3,689
Active Tutors
1439428
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!