What is the reason for executing a gamma hedge?
a. the volatility can change
b. the stock price can make a large move
c. the stock price moves are too small for a delta hedge to work
d. there is no true risk-free rate
e. none of the above
Answer: B
What is the reason for executing a gamma hedge?
a. the volatility can change
b. the stock price can make a large move
c. the stock price moves are too small for a delta hedge to work
d. there is no true risk-free rate
e. none of the above
Answer: B
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.