Neutral hedge


 

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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.



Neutral hedge

Similar Matches

Neutral

Neutral

Describing an opinion that is neither bearish not bullish. Neutral option strategies are generally designed to perform best if there is little or no net change in the price of the underlying stock or index. See also Bearish and Bullish.


Delta neutral

Delta neutral

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


Harrod neutral

Harrod neutral

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


Neutral stock

Neutral stock

A stock with a beta of 1.0.


Risk neutral

Risk neutral

Insensitive to risk.


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