Sentences with phrase «dynamic hedges because»

I understand the rationale for dynamic hedges because of how currencies behave — they tend to follow trends.

We write the path - dependent payoff function above in terms of an equivalent static payoff because there is evidence that the static hedge of a portfolio with path - dependent options is preferred over a dynamic hedging because of lower transaction costs (Tompkins, 2002).

Not exact matches

Now, when it comes to picking a currency - hedged ETF, we tend to eschew dynamic - type ETFs because we prefer static hedges.

The promise of currency - hedging is especially alluring in the case of US stocks because investors would like the good (quality US companies in dynamic sectors not available in the Canadian market) without the bad (everyone «knows» the US dollar is going down the toilet).