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How does a Delta Hedged portfolio yield the Risk-free?

Ivan has the right idea. It’s the process of constructing the hedged portfolio that leaves you with proceeds to invest at the risk free rate. Say you’re long the call and short delta amount of the ...
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Black-Scholes PDE derivation gap

Regarding your first question; nothing prevents you I think, and even something close exists. Without dealing with all the technicalities (I am neither an expert on that), the opposite way of doing ...
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Gamma squeeze - mathematical explanation

Your questions on gamma squeeze are nicely answered here and/or here.
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Black-Scholes PDE derivation gap

Ito process representation uniqueness states that, if $$ \int_0^t Y_u du + \int_0^t Z_u dW_u = 0 $$ for all $T\geq t\geq 0$, then $$ Y = Z = 0 $$ almost surely (aka up to a set of measure $0$). In ...
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