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Which of the following is NOT of equity market sensitivities that are usually considered in dynamic hedging?
Suggested Answer: D
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24 comments · newest first
DE
Detra
2 days ago
I feel confused about theta. Is it really not a sensitivity?
CA
Caitlin
7 days ago
Agreed! Alpha measures performance, not sensitivity.
OL
Oliva
12 days ago
I think the answer is D) alpha. It doesn't fit with the others.
VA
Valentin
17 days ago
Same here! Clarity is key for these concepts.
NO
Norah
23 days ago
I hope they don't trick us with similar terms in the exam.
LE
Lenna
28 days ago
Right! Delta, Vega, and Theta are all about options pricing.
AL
Alethea
1 month ago
I remember learning that alpha relates to excess returns.
AL
Alethea
1 month ago
Theta is a sensitivity, but alpha is definitely not.
TY
Tyra
1 month ago
I feel confused about theta. Isn't it also a sensitivity?
JE
Jerry
2 months ago
Agreed, alpha measures performance, not sensitivity.
MA
Maia
2 months ago
I think the answer is D) alpha. It's not a sensitivity.
CA
Cathrine
2 months ago
Not sure about that, but it sounds right!
MA
Maurine
2 months ago
Yeah, D) alpha is the odd one out here.
CA
Carmen
2 months ago
Wait, isn't alpha more about performance than hedging?
JE
Jesusa
2 months ago
I thought theta was important too!
KI
Kimbery
3 months ago
Delta is definitely a sensitivity to consider.
VE
Venita
3 months ago
I practiced a similar question, and I think I ruled out Delta and Vega quickly. Theta also seems relevant, so I’m leaning towards alpha being the answer.
LU
Luisa
3 months ago
I’m a bit confused. I thought all of these were important in some way, but I guess alpha is more about performance than sensitivity?
ME
Meaghan
3 months ago
I feel like I've seen a question like this before. Delta, Vega, and Theta are definitely part of the Greeks, but alpha seems different.
JU
Juan
3 months ago
I remember studying the Greeks, but I'm not entirely sure about alpha. I think it might not be directly related to dynamic hedging.
BU
Buffy
4 months ago
I’m a bit confused. I know delta and vega are definitely sensitivities, but I’m not 100% sure about theta. Could it be the answer?
MA
Margarett
5 months ago
I practiced a question similar to this, and I think alpha is the odd one out since it measures performance rather than sensitivity.
AD
Adolph
5 months ago
I think delta, vega, and theta are all part of the standard Greeks used in hedging, but I can't recall if alpha fits in there.
LO
Lorean
5 months ago
I remember studying the Greeks, but I’m not entirely sure about alpha. Isn’t it more related to performance rather than sensitivity?