The martingale representation theorem can be used to establish the existence of a hedging strategy.
She said that DuPont's hedging strategy "only works when there is not a lot of volatility" in the foreign exchange market.
Many of these firms had protected their holdings with sophisticated hedging strategies, such as portfolio insurance.
In consequence, the hedging strategy must be adjusted (see Chapter 10).
That would normally be the hedging strategy for a pending deal, but few arbitragers seem to be using it.
These aim to reduce institutions' reliance on computerized hedging strategies.
Losses will be incurred because of an 'incorrect' hedging strategy suggested by a model.
The hedging strategy also now faces a legal challenge.
It is a dynamic hedging strategy which uses stock index futures.
Portfolio insurance is a hedging strategy that involves selling stock index futures contracts.