Compound Options
Compound Options (Words<500)
A compound option is an option on another option. A split-free or compound option is an option for wh...
Tag Archives: Hedging
07
Dec
Hedge Ratio
Hedge Ratio
The ratio of exposure to a hedging instrument to the value of the hedged asset is called a hedge ratio. It compares the va...
10
Oct
Hedging in Financial Markets
Hedging in Financial Markets
Hedging normally happens everywhere. For example, when you’re buying homeowner's insurance, you are hedgin...
30
Sep
Exotic Options
Exotic Options
Options are versatile financial products. Options are a type of derivative that derives their value from the value of th...
18
Jul
Variance Swap
Variance Swap
A variance swap is a financial instrument used for calculating the difference between an expected return and an actual re...
19
May
Interest rate collar
Interest rate collar
An option strategy that limits the range of possibility of positive or negative returns on an underlying asset is ...
13
Mar
Delta Hedging
Delta Hedging
Hedging is the strategy to minimize or offsetting the risk of losing money due to market volatility in commodities, curre...
17
Aug
What is Stack & Roll Hedge?
What is Stack & Roll Hedge?
Hedging is a risk management technique used to reduce investment risks by taking the opposite position ...