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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 10 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 10 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 10 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 10 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 10 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 10 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 10 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 10 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 10 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 10 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 10 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 10 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 10 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 10 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 10 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 10 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 10 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 10 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 10 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 10 months ago by Geethika Bandlamudi