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Which of the following regarding portfolio insurance is TRUE? Question 4 options: Portfolio insurance that involves creating a put option synthetically and rebalanced on a
Which of the following regarding portfolio insurance is TRUE? Question 4 options: Portfolio insurance that involves creating a put option synthetically and rebalanced on a daily basis may still not work well if the market declines very quickly within a day. Creating a synthetic put option requires buying and selling put options in a timely way, preferably on a daily basis. Both A and B above Neither A nor B above
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