Delta,gamma,and Vega Hedging Is Rather Complex

question 27

Multiple Choice

Delta,gamma,and vega hedging is rather complex.Identify the false statement.

• A)Requires the use of four hedging instruments
• B)At least one of the instruments has to be an option
• C)Involves designing a portfolio where delta,gamma,and vega are set equal to zero
• D)Typically involves the solution to three simultaneous equations
• E)All of the above statements are true

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