Since Deltas Change as Stock Values Change, Portfolio Hedge Ratios

question 59

Multiple Choice

Since deltas change as stock values change, portfolio hedge ratios must be constantly updated in active markets. This process is referred to as

• A) portfolio insurance.
• B) rebalancing.
• C) option elasticity.
• D) gamma hedging.
• E) dynamic hedging.

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Definitions:

Criminal Conspiracies

Agreements between two or more parties to commit an illegal act or a legal act in an illegal manner.

Duopolists

Refers to two companies or entities that dominate or control an entire market for a particular product or service, shaping prices, supply, and competition.

Monopolist

A monopolist is an entity or firm that has exclusive control over a market for a particular good or service, enabling it to adjust prices without direct competition.

Collude

To cooperate with others, often in secret and unlawfully, in order to deceive or gain an unfair advantage.