Dynamic hedging(redirected from Dynamic Hedges)
A strategy that involves rebalancing hedge positions as market conditions change; a strategy that seeks to insure the value of a portfolio using a synthetic put option.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
An investment strategy in which one reduces risk by taking various positions in put options according to changing market conditions. For example, one may buy a put to hedge risk to one security in a portfolio thought to be particularly risky at one time, and then sell that put and buy another when matters change.
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