Oracleyoda
New Member
I am interested in hedging strategies for digitals both cash or nothing and asset or nothing varieties.
I can see from the payoff diagram that at the money, there is no way that delta hedging the underlying is going to help with the jump.
There is probably no simple answer, a reference would help.
Thanks
Wayne
I can see from the payoff diagram that at the money, there is no way that delta hedging the underlying is going to help with the jump.
There is probably no simple answer, a reference would help.
Thanks
Wayne