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Among several other hedging strategies, we have examined delta hedging. a) How would you characterize delta hedging? b) Next, explain how the concept is used

Among several other hedging strategies, we have examined delta hedging. a) How would you characterize delta hedging? b) Next, explain how the concept is used in the option pricing models we considered in our subject. c) Finally, illustrate how delta hedging relates to the concept of risk neutral valuation.

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