Portfolio insurance can be obtained by purchasing a protective put option on an equity position. When the

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Portfolio insurance can be obtained by purchasing a protective put option on an equity position.

When the appropriate put is not traded, portfolio insurance entails a dynamic hedge strategy where a number of shares equal to the desired put option’s delta are sold and placed in risk-free securities. p-69

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ISE Investments

ISBN: 9781266085963

13th International Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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Question Posted: Jul 31, 2024 05:01 AM

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Portfolio insurance can be obtained by purchasing a protective put option on an equity position. When the

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