Maintaining a delta-neutral portfolio is an example of which of the following
A. Stop-loss strategy
B. Dynamic hedging
C. Hedge and forget strategy
D. Static hedging
B
Delta-neutral hedging is an example of dynamic hedging. The hedge has to be adjusted periodically. (In theory, to maintain a delta-neutral hedge, the hedge must be adjusted continuously.)
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An example of a conflict trigger over values may occur when a supervisor expects an employee to follow her instructions implicitly, and the employee feels the need to ask lots of questions regarding the basis for such instructions
Indicate whether the statement is true or false.