How Traders Manage Their Exposures Chapter VI. Delta.
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How Traders Manage Their How Traders Manage Their Exposures Exposures Chapter VI
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Transcript of How Traders Manage Their Exposures Chapter VI. Delta.
Delta: Example
• Example: The value of your portfolio is $117,000.
One way of investigating risks you face is to
revalue the portfolio on the assumption that there
is a small increase in the price of gold from $800
per ounce to $800.10 per ounce. Suppose that the
new portfolio value is $116,900. A $0.1 increase in
the gold price decreases your portfolio value by
$100.