Managing Interest Rate Risk
An interest rate swap is an over-the-counter (OTC) contract between two parties that agree to exchange cash flows on specified …
hedge ratio
Module 40.4 & 40.7 LOS 40.k, 40.i: Option Greeks, Synthetic Position, Delta Hedges, Hedge ratio arbitrage
Put-Call Parity and Synthetic Positions Put-call parity is the principle used to generate synthetic longs and shorts. The equation equates …