Neutral hedge - Hedge which is expected to yield a dollar-neutral result of the combined position regardless of price change in any part of the hedge securities. For any convertible trading at a premium, this ratio is less than 100%. The higher the convertible premium, the lower a ratio must be to be neutral. See: delta.
Neutral hedge : hedge which is expected to yield a dollar-neutral result of the combined position regardless of price change in any part of the hedge securities. for any convertible trading at a premium, this ratio is less than 100%. the higher the convertible premium, the lower a ratio must be to be neutral. see: delta.