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In Volatile Markets,dynamic Hedging May Be Difficult to Implement Because

Question 50

Multiple Choice

In volatile markets,dynamic hedging may be difficult to implement because


A) prices move too quickly for effective rebalancing.
B) as volatility increases,historical deltas are too low.
C) price quotes may be delayed so that correct hedge ratios cannot be computed.
D) volatile markets may cause trading halts.
E) all of these.

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