14.7 Delta Hedging continued The hedge position must be frequently rebalanced Delta hedging a written option involves a buy high, sell low' trading rule See Tables 14.2(page 307) and 14.3 (page 308 )for examples of delta hedging Options, Futures, and other Derivatives, 5th edition 2002 by John C. HullOptions, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 14.7 Delta Hedging continued • The hedge position must be frequently rebalanced • Delta hedging a written option involves a “buy high, sell low” trading rule • See Tables 14.2 (page 307) and 14.3 (page 308) for examples of delta hedging