We investigate the effect of including variance derivatives as calibration and hedging instruments for pricing and … hedging exotic structures. This is studied empirically using market data for SPX and VIX derivatives applied in a stochastic …

generalized static replication approach for hedging the in-arrears clean index principal swaps and annuity options … constant maturity swap (CMS) derivative is performed under the forward measure corresponding to the payment date. In this paper …

the capital markets by issuing the rainfall bonds or European type rainfall call options with an upper limit to the … portfolio consisting of only rainfall insurances. In our example the Rainfall call options were more effective at mitigating the … rainfall risk than the rainfall bonds and the capital requirement for an effective hedging of the rainfall insurance portfolio …

Options are financial derivatives which are used as risk management tools for hedging the portfolios. The options … trade. Options trading can be taken to the next level with the help of understanding of Greeks and their Hedging techniques …. This knowledge will enhance the existing knowledge in context to the options hedging and will lead to the benefits in …