How Frequently Should You Consider Rebalancing the Options Hedge on a Large

question 22

Multiple Choice

How frequently should you consider rebalancing the options hedge on a large equity portfolio if you wish to maintain an effective hedge?

• A)weekly
• B)annually
• C)just prior to the fiscal year end
• D)at option expiration
• E)only when the options are in the money

---

Definitions:

Passion

A powerful feeling of enthusiasm or excitement for something or about doing something.

Abu Ghraib Prison

A prison in Iraq that gained international notoriety for human rights abuses committed by members of the U.S. military during the Iraq War.

Zimbardo's Prison Study

A controversial psychological experiment conducted by Philip Zimbardo in 1971 to investigate the effects of perceived power, focusing on the struggle between prisoners and prison officers.

Event

An occurrence or happening, especially one of significance.