The Derivative Based Strategy Known as Portfolio Insurance Involves

question 68

Multiple Choice

The derivative based strategy known as portfolio insurance involves

• A) The sale of a put option on the underlying security position.
• B) The purchase of a put on the underlying security position.
• C) The sale of a call on the underlying security position.
• D) The purchase of a call on the underlying security position.
• E) b and d.

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Definitions:

Neurosis

A term that traditionally refers to a range of psychological disorders characterized by high levels of anxiety, phobia, or other stress-related symptoms.

Sigmund Freud

He was an Austrian neurologist who created psychoanalysis, a method of treating psychological disorders through discussion between a psychoanalyst and their patient.

Behavioral

Pertaining to how a person or animal behaves or responds to both outside and inside triggers.

Mental Processes

The internal, covert activities of the mind, such as thinking, feeling, and decision-making.