A Delta and Gamma Hedge Is

question 44

Multiple Choice

A delta and gamma hedge is

• A)one in which the combined spot and derivatives positions have a delta of zero and a gamma of zero.
• B)one that is not guaranteed to be free of all risks
• C)effective only for small changes in the underlying instrument.
• D)all of the above statements are true
• E)none of the above statements are true

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Definitions:

CRH Receptors

Proteins found in various tissues in the body that bind to corticotropin-releasing hormone, playing a key role in stress response and regulation.

Depressed Individuals

Individuals experiencing a chronic feeling of sadness or a lack of interest, which affects their day-to-day activities.

Bipolar Disorder

A mental disorder marked by significant mood swings including manic highs and depressive lows.

Lithium

A chemical element used especially in the form of its salts as a mood-stabilizing medication, primarily in the treatment of bipolar disorder.