Financial Derivatives Toolbox

Hedging

The Financial Derivatives Toolbox also includes hedging functionality, allowing the rebalancing of portfolios to reach target costs or target sensitivities, which may be set to zero for a neutral-sensitivity portfolio. Optionally, the rebalancing process can be self-financing or directed by a set of user-supplied constraints. For information, see:

• Hedging for a discussion of the hedging process.
• hedgeopt for a description of the function that allocates an optimal hedge.
• hedgeslf for a description of the function that allocates a self-financing hedge.

Financial Instruments

Creating and Managing Instrument Portfolios