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:

Humans

Members of the species Homo sapiens, characterized by their capacity for complex language, reasoning, and social organization.

Lonely Friends

Individuals who feel isolated or disconnected from others despite having friendships.

Lonely

The feeling of sadness or discomfort caused by a perceived lack of meaningful social connections or relationships.

Individualistic

Focusing on personal independence and the expression of individual attributes over group or collective identity.