# Delta Hedging Application

Delta Hedging is an options strategy that aims to reduce the risk associated with price movements in an underlying asset, $S$. If an investor purchases an option of $S$, the investor must sell $\Delta$ ($\frac{\partial V}{\partial S}$) of the asset to engage in a delta hedging strategy. For example, a long call position may be delta-hedged by shorting $\Delta$ of the underlying stock. The value of delta hedge portfolio is $V - \Delta S$ of the option. Considering the assumptions of the Black-Scholes Model, the price of the underlying asset and time are the changing variables that affect the price of a portfolio. This application plots the values of a delta-hedging portfolio with respect to the underlying price of an asset at different times, which is based on the user preferences. This application also computes the profit of the delta edging curve over time with respect to different values of S

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Properties of the stock

= Variance ($\sigma$)
= Interest Rate ($r$)
= Dividend Rate ($\delta$)

Information on the Option
= Exercise Price ($E$)
= Time to Expiry in Years ($T-t$)
= Days Later ($t$)
Graph
= X-max
= X-Min
= X-interval
Call Put

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