In the video Advanced Actuarial Hedging, Andres (Andy) Montes—a seasoned actuary with nearly 40 years of experience—discusses sophisticated techniques for managing risk through derivatives. Building on foundational hedging principles, this PD Edge+ video emphasizes the selection and evaluation of derivative strategies, particularly options, to support chosen hedge strategies. Key topics include intrinsic option value, premium cost reduction techniques, and trade-offs across various strategies such as protective puts, collars, vertical spreads, and calendar spreads. The session also introduces a dynamic hedge evaluation framework, encouraging actuaries to balance hedge effectiveness with product pricing competitiveness. Designed for actuaries seeking deeper insight into risk mitigation, this video provides tools to optimize portfolio protection in complex market environments.
Contributors: Andres Montes, ASA, MAAA; Fiona Fan, FSA, MAAA; Emilia Bruera, FSA; Jon Forster, ASA, MAAA