The Practice of Using Options or Dynamic Hedging Strategies to Provide

question 61

Multiple Choice

The practice of using options or dynamic hedging strategies to provide protection against investment losses while maintaining upside potential is called ________.

• A) trading on gamma
• B) index optioning
• C) portfolio insurance
• D) index arbitrage

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Definitions:

Euclidean Rhythm

A mathematical algorithm that evenly distributes a specified number of beats or pulses across a larger number of time slots, often used in music composition.

Phi Effect

A perceptual illusion where stationary objects shown in rapid succession are perceived as moving, used to explain motion in cinema and animations.

Binocular Rivalry

A phenomenon of visual perception in which perception alternates between different images presented to each eye.

Spatial Neglect

A neurological disorder characterized by a lack of awareness of one side of space, often after a brain injury.