When.com Web Search

Search results

1. Results From The WOW.Com Content Network

2. Vanna–Volga pricing - Wikipedia

   en.wikipedia.org/wiki/Vanna–Volga_pricing

   The rationale behind the above formulation of the Vanna-Volga price is that one can extract the smile cost of an exotic option by measuring the smile cost of a portfolio designed to hedge its Vanna and Volga risks. The reason why one chooses the strategies BF and RR to do this is because they are liquid FX instruments and they carry mainly ...

3. Greeks (finance) - Wikipedia

   en.wikipedia.org/wiki/Greeks_(finance)

   For example, if the delta of a portfolio of options in XYZ (expressed as shares of the underlying) is +2.75, the trader would be able to delta-hedge the portfolio by selling short 2.75 shares of the underlying. This portfolio will then retain its total value regardless of which direction the price of XYZ moves.

4. Real options valuation - Wikipedia

   en.wikipedia.org/wiki/Real_options_valuation

   Real options valuation, also often termed real options analysis, [1] (ROV or ROA) applies option valuation techniques to capital budgeting decisions. [2] A real option itself, is the right—but not the obligation—to undertake certain business initiatives, such as deferring, abandoning, expanding, staging, or contracting a capital investment project. [3]

5. How To Properly Hedge Your Portfolio Using Put Options

   www.aol.com/news/properly-hedge-portfolio-using...

   For premium support please call: 800-290-4726 more ways to reach us

6. Hedge (finance) - Wikipedia

   en.wikipedia.org/wiki/Hedge_(finance)

   A hedge is an investment position intended to offset potential losses or gains that may be incurred by a companion investment. A hedge can be constructed from many types of financial instruments, including stocks, exchange-traded funds, insurance, forward contracts, swaps, options, gambles, [1] many types of over-the-counter and derivative products, and futures contracts.

7. Black–Scholes model - Wikipedia

   en.wikipedia.org/wiki/Black–Scholes_model

   The main principle behind the model is to hedge the option by buying and selling the underlying asset in a specific way to eliminate risk. This type of hedging is called "continuously revised delta hedging" and is the basis of more complicated hedging strategies such as those used by investment banks and hedge funds.