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Finance Dictionary and Glossary of Investment Terms
Hedge that is expected to yield a dollar-neutral result of the combined position, regardless of price change in any part of the hedge securities. For any convertible trading at a premium, this ratio is less than 100%. The higher the convertible premium, the lower a ratio must be to be neutral. See: Delta.
A hedge that combines positions in various investments to create a risk-free return on the money invested, regardless of the movement of the underlying securities.