Hedging Error Lite

Problem

Compute the total absolute hedging error between realized and hedged payoffs.

Return sum of abs(realized[i] - hedged[i]).

Hint

Lower absolute error means a tighter hedge.

case 1

in: [[1,2],[0.9,2.2]]

expected: 0.30000000000000016

case 2

in: [[3],[5]]

expected: 2

case 3

in: [[1,-1],[1,-1]]

expected: 0

Starter codePython

def hedging_error_lite(realized, hedged):
    # Your code here
    pass

3 test cases · run your code against them in the editor