Delta hedging: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Administrator (CSV import) |
imported>Doug Williamson m (Spacing) |
||
| Line 1: | Line 1: | ||
''Hedging with options.'' | ''Hedging with options.'' | ||
The hedging of an option position against changes in the market price of the underlying asset. | The hedging of an option position against changes in the market price of the underlying asset. | ||
| Line 10: | Line 11: | ||
* [[Underlying asset]] | * [[Underlying asset]] | ||
* [[Vega hedging]] | * [[Vega hedging]] | ||
Revision as of 16:27, 9 August 2013
Hedging with options.
The hedging of an option position against changes in the market price of the underlying asset.
A delta hedge is established by buying or selling an amount of the underlying asset calculated by multiplying the number of related options by the delta of the options.
