Protect Your Investments: New Strategy Shields Portfolios from Financial Downturns
The article discusses how to protect an investment portfolio from financial downturns by using portfolio insurance strategies. The researchers focus on finding the assurance value of this risk by buying European put options. They use the Black-Scholes model to determine the values of these strategies based on the performance of the FTSE Bursa Malaysia KLCI index. The study provides straightforward insurance strategies that portfolio managers can use to manage financial market risks effectively.