Delta hedge
= Delta hedge
{title2=$\Delta=\partial_sV$}
{wiki=Greeks_(finance)#Delta}
A delta hedge holds $\Delta_t=\partial_sV(t,S_t)$ units of the risky asset. In the Black-Scholes model, this choice cancels the claim's Brownian exposure.
= Delta hedge
{title2=$\Delta=\partial_sV$}
{wiki=Greeks_(finance)#Delta}
A delta hedge holds $\Delta_t=\partial_sV(t,S_t)$ units of the risky asset. In the Black-Scholes model, this choice cancels the claim's Brownian exposure.