Dynamic hedging or Delta hedging?

This forum is to discuss the book "the concepts and practice of mathematical finance" by Mark Joshi.

Dynamic hedging or Delta hedging?

Postby quee0849 » Thu Apr 03, 2014 11:03 am

On the last line of pg 90, it says that " the Gamma expresses the amount of money we expect to make or lose from dynamic hedging".
I see why this is true for Delta hedging. Is that what we mean when we say dynamic hedging (my impression was that this would also include Gamma hedging etc in which case I'm confused how the Gamma gives the amount of profit from such a hedge)?
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Re: Dynamic hedging or Delta hedging?

Postby mj » Mon Apr 07, 2014 3:44 am

i think it's implicit here that the sort of dynamic hedging being discussed is delta hedging
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