Question: TRUE OR FALSE????? Take a position V affected by two risk factors, X and Y. If the rate of change (sensitivity) of V with respect
TRUE OR FALSE????? Take a position V affected by two risk factors, X and Y. If the rate of change (sensitivity) of V with respect to X is independent on X, then, delta-hedging against changes in X can be done at time zero and never again: there is no need of rebalancing the portfolio at future times.
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