Meaning HEDGE RATIO (DELTA): For options, ratio between the change in an option's theoretical value and the change in price of the underlying stock at a given point in time. For convertibles, percentage of a convertible bond representing the number of underlying common shares sold against the shares into which bonds are convertible. If a preferred is convertible into 2000 common shares, a 75% hedge ratio would be short (long) 1500 common for every 1000 preferred long (short). See: Delta
More terms such as Hedge ratio (delta) in Dictionary H.
- Definition Horizontal Merger:
- Examples A merger involving two or more firms in the same industry that are both at the same stage in the production cycle; that is, two or more competitors hedge ratio (delta) definition.
- Definition Hands-Off Investor:
- Examples An investor who has a large stake in a company, but does not wish to play an active role in the management of the corporation hedge ratio (delta) explain.
- Definition Hedge Wrapper:
- Examples in which an investor with a long position in an underlying stock buys an out-of-the-money put and sells an out-of-the-money call. The hedge wrapper defines a range where the stock will be sold at hedge ratio (delta) what is.
- Definition Horizon Return:
- Examples Total return over a given horizon hedge ratio (delta) meaning.
- Definition Homogeneous Expectations Assumption:
- Examples Markowitz portfolio construction that investors have the same expectations with respect to the inputs that are used to derive efficient portfolios: asset returns, variances, and covariances hedge ratio (delta) abbreviation.
