Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. discuss the following statement once an investor

Discuss the following statement Once an investor sets the total delta of a portfolio...

60.1K

Verified Solution

Question

Finance

Discuss the following statement

Once an investor sets the total delta of a portfolio of options on a stock to zero, she can forget about its exposure to fluctuations in the spot price of the underlying currency. She will be protected from losses since her portfolio started out being delta-neutral.

in detail

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

At 1 atm, how much energy is required to heat 73.0 g of H2O(s) at –22.0...

Chemistry
Q

In winter, people play hockey on Alta Lake in Whistler. However, it is not considered safe...

Physics
Q

1. What is communicated during negotiation? 2. How do people communicate in negotiation? Provide examples. 3. How can...

General Management
Q

This question is about deductions for adjusted gross income. According to my textbook (southwestern individual income...

Accounting
Q

Which of the following pairs of words has the same meaning?A) Insulin-dependent diabetes mellitus, diabetes...

Biology
Q

Choose the best matching graph based on the description of a polynomial The polynomial function...

Algebra
Q

Question Evaluating Investment projects You are planning to invest $75,000 in...

Accounting
Q

This information relates to Carla Vista Co. for the year 2025. Retained earnines,...

Accounting
Q

Why is product quality important for companies that implement a just-in-time inventory system?

Accounting
Q

Examples of Confirmation bias, availability bias, and Anchoring bias in the workplace

Accounting
Q

The simplified balance sheet for the Dutch manufacturer Rensselaer Felt (figures in thousands) is...

Finance
Q

answer asap Question 19 5 pts The company has beginning inventory...

Accounting