25delta Strangle = (25deltaCall-25deltaPut)/2 - ATMVol25delta RR = (25deltaCall - 25deltaPut)hope that helps

<t>Thanks, you all, that has helped a lot.Let's say though, that I continuously hedge my delta through the life of the option, from what I understood, I should be making back the premium that I paid for it. if that is correct, than my option would be a "free" option, because at the end it didn't cos...

<t>I've got a question on Delta Hedging:How can one make money on continuously hedging the Delta of an option? I've "googled" this (i know, not a very sophisticated approach) and found this:"In fact, the amount by which a hedge has to be adjusted to stay delta neutral is related to gamma, the second...

How do you price a par-par asset swap with bloomberg, or otherwise?Thanks

and what is the FX risk involved, if there is initial and final exchange? Thanks

Does anyone know anything about this topic?Is my thinking maybe too complicated and combination of the derivative types works just like any portfolio of different assets?I really need some help here please becaue my academic advisor is not providing me with much help here.Thanks in advance

<t>Again I have a question about the weather and the energy market. But luckily I should be done with my paper soon:1) What is the easiest way of combining weather and power derivatives in one portfolio? Or do I have to consider them seperately? 2) And what considerations are essential in managing t...

Thanks for the help!

Is it correct to say that the CME and the NYMEX are the largest platforms for weather and energy trading, repectively?Which other exchanges have a large marketshare in these products!Thanks for the help in advance!Regards

<t>Thank you for the help so far!!!From what I have found out so far, the main problem seems to be "over-hedging", when combining weather and energy derivatives, in a dual-trigger structure for example. i.e. payments are only made when Temperature is above a certain strike and at the same time Power...

<t>dear wilmott community,i'm getting started on a large paper I have to write for university and my topic is "risk management with weather and energy derivatives"I have done some reading on how weather and energy derivatives function and how they differ, which risks are being hedged with which inst...