# underlier in a sentence

- Quanto options have both the strike price and
*underlier*denominated in the foreign currency. - The portfolio's delta ( assuming the same
*underlier*) is then the sum of all the individual options'deltas. - For instance, the buyer's broker may charge transaction fees to exercise the option to buy or sell the
*underlier*. - In practice, maintaining a delta neutral portfolio requires continuous recalculation of the position's Greeks and rebalancing of the
*underlier*'s position. - After the event has passed, the market may expect the
*underlier*to be relatively stable which results in a lower implied volatility for the subsequent period. - It's difficult to find
*underlier*in a sentence. - This method can also be used when the
*underlier*is difficult to trade, for instance when an underlying stock is hard to borrow and therefore cannot be sold short. - For instance, the near option may include an upcoming event, such as an earnings announcement, that will, in all probability, cause the
*underlier*price to move. - However, when the change in the value of the
*underlier*is not small, the second-order term, \ Gamma \,, cannot be ignored : see Convexity ( finance ). - This is because any error on, say, the estimator for the forward value of an
*underlier*, will generate a corresponding error depending on the delta of the derivative with respect to this forward value. - For any small change in the
*underlier*, we can ignore the second-order term and use the quantity \ Delta \, to determine how much of the underlier to buy or sell to create a hedged portfolio. - For any small change in the underlier, we can ignore the second-order term and use the quantity \ Delta \, to determine how much of the
*underlier*to buy or sell to create a hedged portfolio. - From the Taylor expansion of the value of an option, we get the change in the value of an option, C ( s ) \,, for a change in the value of the
*underlier*( \ epsilon \, ): - Thus, the option seller may end up with an unexpected position in the
*underlier*and thus risk losing value if the underlier's price then moves adversely before the option seller can eliminate this position, perhaps not until the next trading day. - Thus, the option seller may end up with an unexpected position in the underlier and thus risk losing value if the
*underlier*'s price then moves adversely before the option seller can eliminate this position, perhaps not until the next trading day. - These risk scenarios usually involve a defined set of stress test scenarios, rules allowing risk offsets between the theoretical profit and losses ( P & Ls ) of these stress test scenarios for products of a common
*underlier*, and offsets between groups of theoretical P & Ls based on correlations.

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