Dynamic hedge: related pages

The delta of a derivative is the rate of change in the price of a derivative with the price of the underlying.

The most widely used method of option valuation. More complex models are sometimes necessary as it uses a number of simplifying assumptions.

A securities trader who specialises in arbitrage and arbitrage like strategies.

The level of volatility which the market implicitly expects given the current market price of a security.

A hedge that does not require constant monitoring and re-balancing.