Hedge Ratio financial definition of Hedge Ratio. Hedge Ratio finance term by the Free Online Dictionary.

Hedge ratio (delta)

For options, ratio between the change in an option's theoretical value and the change in price of the underlying stock at a given point in time. For convertibles, percentage of a convertible bond representing the number of underlying common shares sold against the shares into which bonds are convertible. If a preferred is convertible into 2000 common shares, a 75% hedge ratio would be short (long) 1500 common for every 1000 preferred long (short). See: Delta.

Hedge Ratio

1. A ratio of the value of the proportion of a position that is hedged to the value of the entire position. A hedge ratio shows how exposed an investment is to risk. For example, if a hedge ratio is .65, then 65% of the investment is protected from risk, while 35% remains exposed.

2. A ratio of the value of a futures contract to the value of the underlying asset. This is used to identify and minimize risk in the contract.

hedge ratio

The number of options required to offset the change in value due to a price change in 100 shares of common stock. For example, if two options are needed to offset value changes for 100 shares of stock, the hedge ratio is 2.

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Coeficiente de cobertura Delta Delta Hedge Delta Hedging Facilitation Neutral Hedge Ratio Option Pricing Curve Racio de cobertura Ratio de couverture	A hedge ratio (H) may be used to determine the respective quantities of stock and options that will produce this return. A note for appraisers on option valuation by Finch, J. Howard; Jones, Travis L.; Weeks, H. Shelton / Appraisal Journal Notably, the flexibility provided by forward/option hybrids such as range options and participating forwards was not as critical as correctly measuring exposure and calibrating the right hedge ratios. Mid-sized companies meeting currency risk management challenge by Baird, Stephen / Financial Executive Even though senior management had some very bright people doing their hedging, they were apparently applying a hedge ratio to a faulty total pipeline amount. The seven deadly sins: of mortgage bankers here's a list of seven ... by Garrett, Joe; Watts, Corky / Mortgage Banking	Heat-Activated Label Heat-Transfer Label Heath-Jarrow-Morton Model Heating Degree Day Heating Oil Heavily Indebted Poor Countries Heavy Heavy Crude heavy industry Heavy Lift Heavy Lift Charge Heavy Lift Vessel Heavy Market Heavy Share Heavy Share Price Heavy Users Heavy-Up hectare Hedge Hedge Against Inflation Hedge Clause Hedge Fund Hedge Fund Alert hedge margin Hedge quality Hedge Ratio Hedge Wrapper Hedged portfolio Hedged Position Hedged Tender Hedger Hedgie Hedging Hedging Demand Hedging demands Hedging Effectiveness Hedonic Damages Heikatsu Hou Heikin Kaikisei heir Heirloom heirs and assigns Hejaz Riyal Held Held at the Opening Held order Held to maturity Held-to-Maturity Securities Hell or High Water Contract Hell-or-high-water contract Hellenic Export Promotion Organization	Hedge funds Hedge Funds Research Institute hedge garlic hedge garlics Hedge hog Hedge hog Hedge hog hedge hyssop hedge hyssop hedge in hedge in hedge in hedge in or round Hedge laying Hedge Laying Association of Ireland hedge maple hedge margin Hedge marriage hedge mustard hedge nettle hedge nettle hedge nettle Hedge note hedge off Hedge parsley hedge pink hedge pink hedge pink Hedge priest Hedge quality Hedge Ratio Hedge Ratios Hedge school hedge sparrow hedge sparrow hedge sparrows hedge sparrows hedge thorn hedge trimmer hedge violet Hedge Woundwort Hedge wrapper Hedge Wrappers Hedge writer Hedge, Frederic Henry Hedge-bote Hedge-mustard hedge-school Hedge-sparrow Hedge-warbler Hedgeborn Hedgebote hedged hedged hedged hedged hedged Hedged Against Inflation hedged bets hedged bets hedged bets

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Coeficiente de cobertura
Delta
Delta Hedge
Delta Hedging
Facilitation
Neutral Hedge Ratio
Option Pricing Curve
Racio de cobertura
Ratio de couverture

A hedge ratio (H) may be used to determine the respective quantities of stock and options that will produce this return.

A note for appraisers on option valuation by Finch, J. Howard; Jones, Travis L.; Weeks, H. Shelton / Appraisal Journal

Notably, the flexibility provided by forward/option hybrids such as range options and participating forwards was not as critical as correctly measuring exposure and calibrating the right hedge ratios.

Mid-sized companies meeting currency risk management challenge by Baird, Stephen / Financial Executive

Even though senior management had some very bright people doing their hedging, they were apparently applying a hedge ratio to a faulty total pipeline amount.

The seven deadly sins: of mortgage bankers here's a list of seven ... by Garrett, Joe; Watts, Corky / Mortgage Banking