%0 Journal Article
%T The Performance of Option-Based Portfolio Insurance on a Dividend Payment Stock
%A Paulina Nangolo
%A Elias Rabson Offen
%A Othusitse Basmanebothe
%J Journal of Mathematical Finance
%P 180-190
%@ 2162-2442
%D 2023
%I Scientific Research Publishing
%R 10.4236/jmf.2023.132012
%X Portfolio insurance is a type of hedging which is a dynamic investment strategy that is designed to guarantee the portfolio value at maturity or up to maturity to be greater or equal to a given lower bond (floor). We analyse the efficiency and the performance of option-based portfolio insurance, by employing two strategies to determine the numbers of stocks, put options, bond value and call options in such a way that the floor value is always protected. Furthermore, we compare the insured versus the non-insured portfolio value.
%K Portfolio Insurance
%K Option-Based Portfolio Insurance
%K Black-Scholes Model
%K European Option
%U http://www.scirp.org/journal/PaperInformation.aspx?PaperID=125117