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Homework answers / question archive / Aston University - BF 3314 Maintaining a delta-neutral portfolio is an example of which of the following: Stop-loss strategy Dynamic hedging Hedge and forget strategy Static hedging
Aston University - BF 3314
Maintaining a delta-neutral portfolio is an example of which of the following:
Answer:
b )
Step-by-Step explanation
The process of hedging the gamma and vega exposures is called dynamic hedging. It is dynamic in the sense that underlier varies several times during the day. Data neutral portfolio is an example of dynamic hedging. Hence, the correct option is B.