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Julie Takes the Time to Identify with and Understand Her

question 25

Multiple Choice

Julie takes the time to identify with and understand her buyer's situation,motives,and feelings.Julie has developed:


Definitions:

Volatility Risk

The risk in the value of options portfolios due to unpredictable changes in the volatility of the underlying asset.

Hedge Ratio

A ratio used to measure the proportion of a position that is hedged or the amount of assets used to hedge a risk exposure.

Dynamic Hedging

Constant updating of hedge positions as market conditions change.

Delta Neutral

The value of the options portfolio is not affected by changes in the value of the underlying asset.

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