When you are long an option and you delta hedge, you want A.traders talking a lot about other asset classes and ignore your underlying B.volatility to increase and the underlying to move around a lot C.the cost of carry to narrow D.volatility to decrease and the underlying to just stop moving

When talking about a long an option hedging, it is the situation when an investigation or an…

Answered: When you are long an option and you…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

When you are long an option and you delta hedge, you want

	A.	traders talking a lot about other asset classes and ignore your underlying
	B.	volatility to increase and the underlying to move around a lot
	C.	the cost of carry to narrow
	D.	volatility to decrease and the underlying to just stop moving

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions