Riskless hedge
Revision as of 00:56, 2 November 2019 by Gary (talk | contribs) (Created page with "Riskless hedge is a hedge in which an investor buys a stock and simultaneously sells a call option on that stock and ends up with a riskless position. ==Definitions== A...")
Riskless hedge is a hedge in which an investor buys a stock and simultaneously sells a call option on that stock and ends up with a riskless position.
Definitions
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Riskless hedge. A hedge in which an investor buys a stock and simultaneously sells a call option on that stock and ends up with a riskless position.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
