hedging

  1. I

    Hedging Problem

    Hi, I want hedge a Forex trade so that my net balance remains zero until one of the orders is cancelled and I gain profit. However, I don't know the calculation that I have to perform in order to establish a zero net balance. Could someone help me please (may be I'm being thick as it's likely...
  2. Deadstar

    Hedging for a single step market

    I'm trying to understand this method correctly so I wrote my own problem. Can someone check to see that the problem itself makes sense and that I solved it right. (Numbers were chosen pretty much at random but were based kinda on the 'power option' (as is the wording and general layout...))...
  3. O

    Hedging a derivative

    Quick question: If an option is replicated by portfolio A, is it hedged by portfolio -A? Or is there a portfolio of positive value that you can use to hedge the option?