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The Greeks evaluate distinct dimension to the risk in a choice place along with the goal of your trader is to deal with the Greeks so that each one pitfalls are acceptable. Or we are able to say Greeks are sensitivities to particular industry variable. Sensitivity is nothing but threat in some kind or the opposite.
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it is actually then very dangerous to depart a delta neutral portfolio unchanged for any period of time. Enable’s understand this point in the example down below:
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