Delta hedging is a risk management strategy in options trading. b) In option pricing models, delta hedging involves creating a delta-neutral portfolio. c) Delta hedging aligns with the concept of risk-neutral valuation by replicating risk-neutral probabilities in the portfolio.
a) Delta hedging is a risk management strategy commonly used in options trading. It involves establishing and maintaining a portfolio of assets that offsets the potential changes in the value of an option position due to fluctuations in the underlying asset's price. The delta of an option represents the sensitivity of the option's price to changes in the underlying asset's price. By taking offsetting positions in the underlying asset and the option, delta hedging aims to reduce or eliminate the risk associated with price movements.
b) In option pricing models such as the Black-Scholes model, delta plays a crucial role. Delta represents the rate of change in the option price relative to changes in the underlying asset price. It indicates the probability of the option expiring in-the-money (positive delta) or out-of-the-money (negative delta).
To illustrate how delta hedging is used in option pricing models, consider a scenario where an investor holds a long call option position. The delta of the call option will be positive, indicating that the option price will increase as the underlying asset price rises. To hedge against potential losses if the underlying asset price falls, the investor would take a short position in the underlying asset. This creates a delta-neutral portfolio where any changes in the value of the option position are offset by changes in the value of the underlying asset position.
c) Delta hedging is closely related to the concept of risk-neutral valuation. In the risk-neutral framework, it is assumed that the market is risk-neutral, meaning that investors are indifferent to taking on risk. Risk-neutral valuation allows for simplified pricing of derivatives, including options, by considering the expected value of future cash flows discounted at the risk-free rate.
Delta hedging can be seen as a practical implementation of risk-neutral valuation. By maintaining a delta-neutral portfolio, investors effectively eliminate the directional risk associated with changes in the underlying asset's price. This aligns with the risk-neutral assumption that investors are indifferent to the market's movements.
In the risk-neutral framework, the delta of an option represents the probability of the option expiring in-the-money. By delta hedging, investors are replicating the risk-neutral probabilities in their portfolio, ensuring that the expected value of the hedged position aligns with the risk-neutral valuation approach. Delta hedging allows investors to manage their exposure to market movements while aligning their portfolio with the assumptions of risk-neutral pricing.
Overall, delta hedging is a practical strategy used in option trading to manage risk, and it aligns with the concept of risk-neutral valuation by maintaining a delta-neutral portfolio and replicating the risk-neutral probabilities in the pricing of options.
Learn more about delta hedging here:
https://brainly.com/question/29731518
#SPJ11
Discuss how commas affect reading fluency.
Answer:
It plays a major role because it's easier to read by separating phrases.
Explanation:
For example, if you invited your grandma to eat dinner, you could say "Let's eat Grandma" but that sounds wrong. You're addressing your grandma, not eating her. So you would say "Let's eat, Grandma." with a comma to show separation. Also, commas are used like I just used it, after a transition word. And if there is more than two things that you are referring to, you use commas. For example, "pickles, cats, and dogs."
Which option correctly uses commas to set off a nonrestrictive clause?
A. Plato who was, a Greek philosopher, wrote the tragic story of the
ancient civilization Atlantis.
B. Plato who was a Greek philosopher, wrote the tragic story of the
ancient civilization Atlantis.
C. Plato, who was a Greek philosopher, wrote the tragic story of the
ancient civilization Atlantis.
D. Plato who was a Greek philosopher wrote the tragic story of the
ancient civilization, Atlantis.
Answer:
C
Explanation:
What is the tone of This Living Hand by John Keats?
Answer:
He is distraught, terrified really, and reaches out for contact. He is enraged and displays his hand to prove to you he exists—"see here it is." He converts the listener, the reader, from a formal "thou" to a more intimate "you." The sentence moves from the conditional future to the present tense.
Explanation:
- Eijiro <3
Which of the following elements are used in oratory to create an emotional appeal?
body language
tone of voice
patterns of speech
neutral language
I'd think B//tone of voice?
Explanation:
an emotional appeal is created by a pathos a Greek word which is an emotional appeal.some words explaining this term are huge muscles as in huge and strong and also passion.
Complete the following
sentence:
There was a sense of
before the exam,
everyone was shaking with
anxiety.
A. perturbation
B. deliberately
C. congenial
D. pervaded
Answer:
A. Perturbation
Explanation:
There was a sense of perturbation before the Exam everyone was shaking with anxiety
What is the American Dream? Has it changed from the 1920's to present day? If so how? Explain in detail
Answer:
The American Dream is the the dream lifestyle of all Americans. This dream includes having a spouse, a good job, kids and a house. During the 1920's it was possible for a large family to survive off of the income of one provider. Now in modern day, a large family couldn't possible afford to survive on one income. Due to low minimum wage and job outsourcing. The average American dosen't have a enough money to fulfill the American dream.
3. Two individuals who are dating get serious, but their parents tell them they can no longer
see each other because they fear it will ruin their lives. This is an example of
a. Who am I?
b. Time and Place
c. Keeping It Relevant
d. Adults
e. Friend Group
f. Young Love
g. Loss of Innocence
Answer:
Young love
Explanation:
The answer is Young Love
Read the excerpt from John Muir's "Calypso Borealis" and answer the question. [1] After earning a few dollars working on my brother-in law's farm near Portage [Wisconsin], I set off on the first of my long lonely excursions, botanising in glorious freedom around the Great Lakes and wandering through innumerable tamarac and arbor-vitae swamps, and forests of maple, basswood, ash, elm, balsam, fir, pine, spruce, hemlock, rejoicing in their bound wealth and strength and beauty, climbing the trees, revelling in their flowers and fruit like bees in beds of goldenrods, glorying in the fresh cool beauty and charm of the bog and meadow heathworts, grasses, carices, ferns, mosses, liverworts displayed in boundless profusion. [2] The rarest and most beautiful of the flowering plants I discovered on this first grand excursion was Calypso borealis (the Hider of the North). I had been fording streams more and more difficult to cross and wading bogs and swamps that seemed more and more extensive and more difficult to force one's way through. Entering one of these great tamarac and arbor-vitae swamps one morning, holding a general though very crooked course by compass, struggling through tangled drooping branches and over and under broad heaps of fallen trees, I began to fear that I would not be able to reach dry ground before dark, and therefore would have to pass the night in the swamp and began, faint and hungry, to plan a nest of branches on one of the largest trees or windfalls like a monkey's nest, or eagle's, or Indian's in the flooded forests of the Orinoco described by Humboldt. [3] But when the sun was getting low and everything seemed most bewildering and discouraging, I found beautiful Calypso on the mossy bank of a stream, growing not in the ground but on a bed of yellow mosses in which its small white bulb had found a soft nest and from which its one leaf and one flower sprung. The flower was white and made the impression of the utmost simple purity like a snowflower … In a paragraph of 3–5 sentences, explain
presents endless possibilities to experience and appreciate . This is the correct option. The author, John Muir , refers to this idea when he says: "....and glorying in God's abounding inexhaustible spiritual beauty bread. ...were welcomed as friends. " The words abounding and inexhaustible refer to endless possibilties. He also uses the phrase spiritual beauty bread. This means that nature can be eaten like bread and the taste of nature can be tasted or appreciated. Plants, storms , thunderstorms and winds in the woods are in the beauty bread.
These options are not right:
-is filled with countless opportunities to discover rare plants. The writer sets the focus on nature as a whole not just on plants.
-needs to be conquered and controlled by human exploration. The writer enjoys nature ; he is not interested in controlling it.
-offers many unique challenges for the mind, body, and spirit. The writer enjoys nature ; he does not see it as challenging.
Which statement best describes how Ginsberg's diction contributes to his style in the poem "Homework"?
A. He uses the formal language of news broadcasters to emphasize the need for US intervention.
edge 2021 c:
identify the italicized phrase in the sentence below. to be a good parent requires patience. this phrase is a(n) _____. infinitive phrase prepositional phrase participial phrase gerund phrase
The italicized phrase "to be a good parent" is an infinitive phrase. Option A is the correct answer.
An infinitive phrase is formed by an infinitive verb (in this case, "to be") and any accompanying words or modifiers. It functions as a noun, adjective, or adverb in a sentence. In the given sentence, the infinitive phrase "to be a good parent" acts as the subject and represents the action or concept of being a good parent. It answers the question of what is required to be a good parent. The phrase begins with the infinitive marker "to" followed by the verb "be" and the noun phrase "a good parent."
Option A is the correct answer.
You can learn more about infinitive phrase at
https://brainly.com/question/29798207
#SPJ11
PLEASE HELP!!!
Click to review the online content. Then answer the question(s) below, using complete sentences. Scroll down to view additional questions.
Online Content: Site 1 (The Basics of Ethical Communication)
Online Content: Site 2 (Enculturation)
Select two principles of ethical communication. Explain why you feel they are important. (site 1)
What are the six areas of enculturation learned through a person's lifetime? (site 2)
Answer and Explanation:
Hello. Unfortunately it is not possible to have access to the sites you present in the question, but I will try to help you in the best possible way.
1. Two very important principles in ethical communication are transparency and autonomy. Transparency is the principle that allows, within an ethical communication, all motivations, opinions, objectives, meanings, aspirations and intentions to be presented in a complete way, without being modified or hidden. This allows for a correct interpretation of the message, preventing distortions of meaning. Autonomy, on the other hand, is the principle that allows an individual to take responsibility for everything he is saying when communicating, therefore being rational and having self-determination to position himself.
2. Throughout life, an individual is able to learn six areas of enculturation which are technical, economical, political, interactive, ideological and worldview. It is important to note that enculturation allows an individual to become aware of areas of knowledge, such as those mentioned above, during communication that is able to explain these areas through words and gestures, thus encompassing verbal and non-verbal communication.
give me examples that is related to affection 4 only
Answer:
love,happiness,kindness,Care
please help me!!!essay on aim of my life!!!
Answer:
Explanation:
example My aim in life is to become a good teacher. ... Being a teacher I would be able to bring happiness and laughter in the lives of these little flowers. There are many children who do not know what to do in their lives. I would guide and help them to learn and become good citizens of the country.
Does this sentence contain alliteration:
Teachers are teaching tough things during the tiring day.
Answer:
Yes as alliteration is the same letter or sound at the beginning of adjacent or closely connected words. T is consistent throughout the sentence.
From the story "Yellow Ribbon", Whose point of view was the story being told from?
Answer:
the story "Yellow Ribbon" is a first person point of view
Help please I have 10 minutes left!! Please help!!
I FOUND BARNEY!!!!!!!! HE'S BIG AND PURPLE. Im just a kid whos four each day i grow somemore i love exploring im caicou, caicou, caicou, thats me and me and me.......
Answer:
Wowwwww nice!!!!!!!!!!!
Answer:
Throwbacks of weird children shows that i never liked to watch
Wow Brings back Memories of hating them.
Describe how your screen time has been impacted by social distancing. Has your opinion about “being online” changed as well?
social media has positive as well as negative impacts on communication skills. ... It is affecting our relationships and decreases the quality of interpersonal communication. Another impairment of communication skills caused by the extensive use of social media platform is the impoverishment of language
PlZZ help Please subscribe Single-3 FF on yt
What services does the agency or organization provide?
Answer:
which agency?
Explanation:
what organization? this is so vague
which word from the haiku supports gabriel’s analysis?april’swillow-leavesbutterflybalances
The word "balances" from the haiku supports Gabriel's analysis. Option D is the correct option.
It is difficult to give a thorough explanation without knowing the precise context of Gabriel's analysis and the haiku that is being referenced. However, depending on how the word is used and how it relates to the analysis, the word "balances" in a haiku might generally support Gabriel's theory.
The concept of "balances" refers to a condition of harmony or equilibrium where elements or forces are dispersed equally or are counter balanced. The word "balances" would fit that interpretation if Gabriel's analysis emphasizes the haiku's concept of balance or the juxtaposition of opposing parts.
The haiku form, which consists of three lines with a 5-7-5 syllable pattern, aims for harmony and balance in both its structure and content. Gabriel's study focuses on the form's inherent structural and thematic balance, although it is challenging to offer a more detailed justification.
To learn more about Gabriel's analysis link is here:
brainly.com/question/29763723
#SPJ4
The complete question is:
which word from the haiku supports gabriel’s analysis?
a. april’s
b. willow-leaves
c.butterfly
d. balances
in act i, scene v, of the tragedy of romeo and juliet, why does capulet allow romeo to remain at the feast? a. he wants to confront romeo later, when there are not as many people present. b. he wants to monitor romeo and see what romeo might be scheming to do. c. he will not allow a well-mannered guest to be insulted in his home. d. he is annoyed, but he wants to deal with romeo in his own way.
In Act I, Scene V of "The Tragedy of Romeo and Juliet," Capulet allows Romeo to remain at the feast because he will not allow a well-mannered guest to be insulted in his home. The correct answer is option c.
When Tybalt recognizes Romeo's voice and intends to remove him forcefully, Capulet intervenes and insists that Romeo should be left alone. Capulet praises Romeo's reputation as a respectable and honorable young man, expressing his desire to maintain a peaceful and welcoming atmosphere in his household.
Capulet's decision to protect Romeo from any harm or disrespect aligns with his position as the host and his desire to uphold social decorum during the festive gathering.
The correct answer is option c.
To know more about Romeo refer to-
https://brainly.com/question/10468114
#SPJ11
Status
Exam
Which verb should be used to complete this
writing in an imperative mood?
Beat two eggs together. Add a
dash of salt and some cheese.
?
the ingredients in a frying pan.
A. Cook
B. Cooks
C. Cooked
Answer:
A
Explanation: an imperative statement means someone is demanding something. therefore the answer is A becausethe author is letting you know that the instructions are to cook. not to cooks and not to cooked. Beat two eggs together. Add a
dash of salt and some cheese.
Then Cook.
A protagonist sees a friend get attacked for no reason, and decides that life isn't safe
and fair for anyone. This is an example of
a. Who am I?
b. Time and Place
c. Keeping It Relevant
d. Adults
e. Friend Group
f. Young Love
g. Loss of Innocence
Answer:
honestly id have to choose between c and g because I'm not 100 percent sure which one but id have to go with one of those
Value at Risk (VaR) can most appropriately be defined as:
A. An estimate of how much money a portfolio could lose,
B. An estimate, with a given degree of confidence X%, of how much a portfolio can
lose over a given time horizon, expressed as the next N business days,
C. A specification of the loss distribution of a portfolio,
D. A measure of the risk associated with a portfolio,
E. All of the above.
Value at Risk (VaR) can most appropriately be defined as An estimate, with a given degree of confidence X%, of how much a portfolio can lose over a given time horizon, expressed as the next N business days. Option B.
Value at Risk (VaR) is a quantitative risk measure. It is used to assess market risk or the chance of loss on a portfolio of financial instruments. VaR is the extent of losses (in percentage or currency value) that a portfolio might suffer in a given time period with a given level of probability. A degree of certainty, for example, 95%, is used in defining VaR. The portfolio's VaR is determined by using a statistical methodology to create a probability distribution of potential losses over the time horizon and a level of probability. Answer option B.
More on Value at Risk: https://brainly.com/question/32528909
#SPJ11
Question 2 (2 points) Which of the following has/have the main responsibility of regulating the life, health, and property and casualty insurance industry? a) the U.S. Treasury b) the Federal Deposit
The main responsibility of regulating the life, health, and property and casualty insurance industry is undertaken by the State Insurance Commissioners in the United States.
This option is not listed, so the correct answer would be none of the above.
In the United States, the regulation of the life, health, and property and casualty insurance industry is a state responsibility, not a federal one. Every state has a Department of Insurance or a similar regulatory authority that enforces insurance regulations and oversees insurance firms' activities within the state.
The National Association of Insurance Commissioners (NAIC) serves as a representative organization for the insurance regulatory authorities of all 50 states, as well as the District of Columbia and the five U.S. territories.
The NAIC works to develop and promote uniform insurance policies, encourage consistency across state insurance legislation, and assist in regulatory enforcement across state lines.
Learn more about insurance at:
https://brainly.com/question/31477233
#SPJ11
Select the correct answer.
What is Thoreau's attitude toward farming?
OA.
He considers it an enjoyable way to earn the money he needs.
B.
He dislikes it and doesn't plan to plant crops again next year.
Oc.
He thinks it is hard because he has to remove stumps from the land.
Reset
Ne
it is b because he doesn't like it
Project: Introducing your Argument. I don't get this project at all I need help.
could someone tell answer for all of them
Answer:
you like that GG yo
Explanation:
What are railroads orignal plans? And models
Answer:
I do jsjjsisosjeieeusgvebdhfjdj