https://gdpark.blog/tags/hedge-ratio/Recent content in Hedge Ratio on gdpark.blogHugoenThu, 13 Oct 2016 00:00:00 +0000https://gdpark.blog/posts/derivatives-03-hedging-strategies-using-futures/Thu, 13 Oct 2016 00:00:00 +0000https://gdpark.blog/posts/derivatives-03-hedging-strategies-using-futures/A quiz-style walkthrough of futures hedging — short vs long hedges, basis risk, optimal hedge ratios, and beta reduction with index futures.https://gdpark.blog/posts/financial-engineering-04-binomial-model-one-period/Mon, 03 Oct 2016 00:00:00 +0000https://gdpark.blog/posts/financial-engineering-04-binomial-model-one-period/Breaking down the one-period Binomial Model — where stock prices only go up or down — and using that to price a call option with a risk-free portfolio.