What prevents a market-maker from readjusting her delta hedge on a continual basis?
What will be an ideal response?
Transaction costs as well as the lack of price movement make constant readjustment impractical.
Business
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Brand spiraling is using:
A) various online advertising techniques to develop a brand B) interactive marketing methods to build Web traffic C) traditional media to promote and attract customers to a website D) viral and permission marketing coupled with database technologies
Business
The spot price of the market index is $900. A 3-month forward contract on this index is priced at $930. What is the profit or loss to a short position if the spot price of the market index rises to $920 by the expiration date?
A) $20 gain B) $20 loss C) $10 gain D) $10 loss
Business