Dynamic Hedging Is

question 73

Multiple Choice

Dynamic hedging is

• A) the volatility level for the stock that the option price implies.
• B) the continued updating of the hedge ratio as time passes.
• C) the percentage change in the stock call-option price divided by the percentage change in the stock price.
• D) the sensitivity of the delta to the stock price.

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Definitions:

Interphalangeal

Pertaining to the joints between the phalanges, the bones in the fingers and toes.

Metacarpophalangeal

Refers to the joints between the metacarpal bones and the phalanges (fingers) of the hands, supporting movement such as bending.

Tibiotalar

Referring to the joint formed between the tibia (shinbone) and the talus (ankle bone), crucial for ankle movement.

Tarsometatarsal

Referring to the joint connections between the tarsal bones of the foot and the metatarsal bones of the forefoot.