New answers tagged hedging
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Any other ways to hedge a bond portfolio against interest rate risk?
If you are long a bond and want to hedge it:
Sell the same bond.
Sell another bond.
Sell a bond future.
Pay a swap.
Buy a payer swaption.
Those are some basic methods. Ofcourse there are many ...
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How do we hedge option vega practically?
Just adding my 2 cents. The skill of the role is to collect bid offer on average. Therefore, there will most definitely be times where your positions carry you out and you are forced to lose some or ...
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How do we hedge option vega practically?
Without losing money is a difficult one, just read a book that said that you can hedge vega with an at-the-money straddle. If you are the selling side, the only downside is that straddles require more ...
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