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How does the synthetic portfolio insurance approach work? What is the theoretical justification? How is the approached evolved to institutional portfolio managers resorting to stock
How does the synthetic portfolio insurance approach work? What is the theoretical justification? How is the approached evolved to institutional portfolio managers resorting to stock index futures contracts instead of selling the underlying portfolio? Does this approach work? Please carefully explain your answers.
What is the reason to create weather derivatives? What are the underlying variables used for temperature-related weather derivatives?
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