21. Hedging strategies

21.1. Introduction

21.2. Mininum Variance Hedging

21.3. Factor models

21.3.1. Principal Component Analysis

21.4. Hedging with transaction costs

21.5. Pre-hedging

21.6. Skew vs hedge in the Avellaneda-Stoikov framework

21.7. Non linear hedges

21.8. Exercises