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 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
Chapter16: Interest, Rent, And Profit
Section16.4: The Entrepreneur
Problem 1ST
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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
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