A state of the delta of an option which makes the variation of an in-the-money option‘s hedge ratio extremely wide…

A ratio spread which is constructed by involving deltas of options in order to create a neutral “overall” position. To...

The option price sensitivity to a change in the price of its underlying. It represents the change in the price...

The ratio of the value of long or short futures contracts to the value of the cash commodity being hedged....

It stands for hedge ratio; the ratio of the value of long or short futures contracts to the value of...

The ratio of the value of long or short futures contracts to the value of the cash commodity being hedged....

A ratio spread which is constructed by involving deltas of options such that a neutral “overall” position is created. To...

It stands for minimum variance hedge ratio; a mathematical tool for determination of the optimal cross hedging ratio. This means...

A mathematical tool for determination of the optimal cross hedging ratio. This means the minimum variance between the gain/ loss...

Also known as minimum variance hedge ratio (MVHR); a mathematical tool for determination of the optimal cross hedging ratio. This...