Discuss the implications of employing portfolio insurance

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Reference no: EM13941176

1. Analyze the different derivative security tools involved in hedging, briefly explaining how each are used to attain its objective to lower risk

2. Discuss the implications of employing portfolio insurance in an investment portfolio

3. Distinguish between the short sales of equity securities and those of exchange-traded funds

4. Discuss the implications of the following statement: “The derivative markets are actually negative-sum games.”

5. Define an offsetting notional principal contract and explain when might an investor might engage in such a transaction

6. Explain how a combination of a long call and a short put equates to holding a synthetic position in the underlying stock

Reference no: EM13941176

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