Delta neutral


 

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Delta neutral

Describes value of a portfolio not affected by changes in the value of the asset on which the options are written.

Delta neutral

A position where the sum of the deltas of the component legs adds up to 0.



Similar Matches

Harrod neutral

Harrod neutral

A particular specification of technological change or technological difference that is labor augmenting.


Neutral

Neutral

1. Said of a technological change or technological difference if it is not biased in favor of using more or less of one factor than another. This can be defined in several different ways that are not normally equivalent: Hicks-neutral, Harrod-neutral, and Solow-neutral. 2. Said of economic growth if it expands actual or potential output of all goods at the same rate, not being biased in favor of one over another. In the Heckscher-Ohlin Model neutral growth will occur all factor endowments grow at the same rate or if there is Hicks Neutral technological progress at the same rate in all industries. 3. Said of a trade regime if the structure of protection favors neither exportables nor importables. See bias.


Neutral hedge

Neutral hedge

Hedge that is expected to yield a dollar-neutral result of the combined position, regardless of price change in any part of the hedge securities. For any convertible trading at a premium, this ratio is less than 100%. The higher the convertible premium, the lower a ratio must be to be neutral. See: Delta.


Hicks-neutral

Hicks-neutral

Said of a technological change or technological difference if production functions differ by scaling of output only: F2(V)=lF1(V), where F1(·) and F2(·) are the production functions being compared, V is a vector of factor inputs, and l>0 is a constant.


Tax neutrality

Tax neutrality

Characteristic that taxes do not interfere with the natural flow of capital toward its most productive use.


Further Suggestions

Market Neutral
Neutral period
Risk neutral
Neutral stock
neutral
Solow neutral


 
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