Examlex
A router must use the ARP process ________.
Hedge Ratio
The ratio used to determine the appropriate amount of hedging required to protect a position or portfolio from price fluctuations.
Option Smirk
A pattern on the implied volatility graph for options across different strike prices that shows asymmetric volatility, often indicating market anticipation of movement.
Black-Scholes Option
A mathematical model used to price European options and derivatives by estimating the variation over time of financial instruments.
Implied Volatility
The market's forecast of a likely movement in a security's price, often derived from the price of its options.
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