Which of the Following Forms of Hedging Requires the Use

question 9

Multiple Choice

Which of the following forms of hedging requires the use of options?

• A)delta hedging
• B)vega hedging
• C)gamma hedging
• D)credit risk hedging
• E)none of the above

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Definitions:

Shareholder

An individual or institution that owns at least one share of a company's stock, making them a partial owner.

Creditor

A person or institution to whom money is owed.

Consolidated Corporation

A company formed by the merger or acquisition of multiple smaller companies, typically to streamline operations and reduce costs.

Cease to Exist

To stop existing or to come to an end completely, often used in the context of organizations, entities, or life.