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Making a Portfolio Delta Neutral
The Art of Balance Creating a Delta-neutral portfolio is like balancing a seesaw. You want to pos...
Delta Positive Gamma Neutral
A Specific Portfolio Configuration A "Delta Positive, Gamma Neutral" portfolio is a specific type...
Delta Hedging and Gamma Hedging
Managing Your Option Risks Delta hedging and Gamma hedging are strategies to reduce the risk of y...
Relationship and Comparison Among Stock Greeks
The Greeks aren't independent; they dance together! Understanding their relationships is key to ...
Numerical example
Let's work through a complete numerical example for each Greek (Delta, Theta, Gamma, Vega, and Rh...
Formula sheet
Summary of Correct Formulas: Delta (Δ): Measures sensitivity to price changes. Thet...
Summary
1. Delta (Δ) – Measures Price Sensitivity What it tells you: Delta shows how much the option pri...
Option Greeks
Understanding the Basics Imagine you've bought an option contract. This contract gives you the ri...
Basic Concepts and Conventions
Accounting principles are like the rules of the road for financial reporting. They ensure everyon...
Other Important Provisions
Insurance policies often contain provisions that address how losses are shared when multiple pol...
Coinsurance – Nature, Purpose, and Problems
Coinsurance is a provision commonly found in property insurance policies that encourages policyh...
Rate Making
Rate making, also known as ratemaking or pricing, is the process of determining the premium rate...
Insurance and Investments
Insurance companies are significant investors, managing vast portfolios of assets to meet their ...
Alternatives to Traditional Reinsurance
Securitization of Risk and Catastrophe Bonds In addition to traditional reinsurance, insurance co...
Types of Reinsurance
Reinsurance agreements can be broadly classified into two main types: facultative reinsurance an...
Reinsurance – Definitions, Reasons for Reinsurance
Reinsurance is a critical component of insurance company operations, serving as a way for insure...
Regulatory Framework of Insurance in India
The insurance industry in India is governed by a comprehensive regulatory framework designed to ...
Deductibles – Concepts and Purpose
A deductible is a specified dollar amount that the insured must pay out-of-pocket before the ins...
Endorsements and Riders
Endorsements and riders are written provisions that add to, modify, or delete provisions in the ...
Claims Settlement
Claims settlement is a critical function of insurance companies, involving the process of invest...