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Making a Portfolio Delta Neutral

Advance Derivatives Unit 1: Greeks

The Art of Balance Creating a Delta-neutral portfolio is like balancing a seesaw. You want to pos...

Updated 3 months ago by Geethika Bandlamudi

Delta Positive Gamma Neutral

Advance Derivatives Unit 1: Greeks

A Specific Portfolio Configuration A "Delta Positive, Gamma Neutral" portfolio is a specific type...

Updated 3 months ago by Geethika Bandlamudi

Delta Hedging and Gamma Hedging

Advance Derivatives Unit 1: Greeks

Managing Your Option Risks Delta hedging and Gamma hedging are strategies to reduce the risk of y...

Updated 3 months ago by Geethika Bandlamudi

Relationship and Comparison Among Stock Greeks

Advance Derivatives Unit 1: Greeks

The Greeks aren't independent; they dance together! Understanding their relationships is key to ...

Updated 3 months ago by Geethika Bandlamudi

Numerical example

Advance Derivatives Unit 1: Greeks

Let's work through a complete numerical example for each Greek (Delta, Theta, Gamma, Vega, and Rh...

Updated 3 months ago by Geethika Bandlamudi

Formula sheet

Advance Derivatives Unit 1: Greeks

Summary of Correct Formulas: Delta (Δ): Measures sensitivity to price changes. Thet...

Updated 3 months ago by Geethika Bandlamudi

Summary

Advance Derivatives Unit 1: Greeks

1. Delta (Δ) – Measures Price Sensitivity What it tells you: Delta shows how much the option pri...

Updated 3 months ago by Geethika Bandlamudi

Option Greeks

Advance Derivatives Unit 1: Greeks

Understanding the Basics Imagine you've bought an option contract. This contract gives you the ri...

Updated 3 months ago by Geethika Bandlamudi

Basic Concepts and Conventions

Financial Accounting and Analysis Unit 1 - Introduction to Financial Acco...

Accounting principles are like the rules of the road for financial reporting. They ensure everyon...

Updated 3 months ago by Aman thoyaj krishna

Other Important Provisions

Insurance Unit 4: Important Aspects of Insurance ...

Insurance policies often contain provisions that address how losses are shared when multiple pol...

Updated 4 months ago by Geethika Bandlamudi

Coinsurance – Nature, Purpose, and Problems

Insurance Unit 4: Important Aspects of Insurance ...

Coinsurance is a provision commonly found in property insurance policies that encourages policyh...

Updated 4 months ago by Geethika Bandlamudi

Rate Making

Insurance Unit 4: Important Aspects of Insurance ...

Rate making, also known as ratemaking or pricing, is the process of determining the premium rate...

Updated 4 months ago by Geethika Bandlamudi

Insurance and Investments

Insurance Unit 4: Important Aspects of Insurance ...

Insurance companies are significant investors, managing vast portfolios of assets to meet their ...

Updated 4 months ago by Geethika Bandlamudi

Alternatives to Traditional Reinsurance

Insurance Unit 4: Important Aspects of Insurance ...

Securitization of Risk and Catastrophe Bonds In addition to traditional reinsurance, insurance co...

Updated 4 months ago by Geethika Bandlamudi

Types of Reinsurance

Insurance Unit 4: Important Aspects of Insurance ...

Reinsurance agreements can be broadly classified into two main types: facultative reinsurance an...

Updated 4 months ago by Geethika Bandlamudi

Reinsurance – Definitions, Reasons for Reinsurance

Insurance Unit 4: Important Aspects of Insurance ...

Reinsurance is a critical component of insurance company operations, serving as a way for insure...

Updated 4 months ago by Geethika Bandlamudi

Regulatory Framework of Insurance in India

Insurance Unit 3: Insurance Company Operations

The insurance industry in India is governed by a comprehensive regulatory framework designed to ...

Updated 4 months ago by Geethika Bandlamudi

Deductibles – Concepts and Purpose

Insurance Unit 3: Insurance Company Operations

A deductible is a specified dollar amount that the insured must pay out-of-pocket before the ins...

Updated 4 months ago by Geethika Bandlamudi

Endorsements and Riders

Insurance Unit 3: Insurance Company Operations

Endorsements and riders are written provisions that add to, modify, or delete provisions in the ...

Updated 4 months ago by Geethika Bandlamudi

Claims Settlement

Insurance Unit 3: Insurance Company Operations

Claims settlement is a critical function of insurance companies, involving the process of invest...

Updated 4 months ago by Geethika Bandlamudi