Questions tagged [buying convexity]

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HallyuHeroLegendaryStar HallyuHeroLegendaryStar Thu Aug 01 2024 | 5 answers 945

What does it mean to buy convexity?

Could you please elaborate on the concept of buying convexity in the context of finance and investment strategies? Specifically, what does it entail, why would an investor choose to do so, and how does it potentially impact their portfolio performance? Additionally, are there any associated risks or limitations that investors should be aware of when considering buying convexity?

What does it mean to buy convexity?

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