The change in price of a call option for every one-point move in the price of the underlying security. also called hedge ratio or delta.

Related information about neutral hedge ratio:

Related information about neutral hedge ratio:

**Neutral Hedge Ratio - Financial Dictionary - The Free Dictionary**

The change in the price of a call for every one unit of change in the price of the underlying asset. The neutral hedge ratio varies according to length of time until ...

**What is neutral hedge ratio? definition and meaning**

Definition of neutral hedge ratio: The change in price of a call option for every one-point move in the price of the underlying security. also called hedge ratio or ...

**neutral hedge ratio - Invest Definition**

neutral hedge ratio definition: The number of options contracts necessary to offset exactly any changes in the price of a contract's underlying asset. This ratio ...

*** Hedge ratio - (Stock market): Definition**

neutral hedge ratio The change in price of a call option for every one-point move in the price of... neutral spread Any profit-maximizing spread designed to create ...

**Convertible Arbitrage Strategy - AIMA Canada**

neutral hedge ratio are the key return drivers, though the use of leverage is often the largest contributor to total return (see Figure 2 below). B. Volatility Trading ...

**Delta Hedging Strategies | eHow.com**

In this situation, a trader will have to short an escalating amount of underlying asset to rebalance to a neutral hedge ratio. Gamma describes precisely how much ...

**Schaeffer's Investment Research - Glossary**

Delta (also neutral hedge ratio) The percentage of price movement in the underlying stock that will be translated into the price movement in a particular option.

**1.4 Theoretical Hedge Ratios**

The contract size is 1 000 000 USD. (a) Calculate a delta neutral hedge ratio assuming that . (b) Calculate the number of contracts required to hedge the position ...