Basket Options: Constant Proportion Portfolio Insurance
Interactive

Basket Options: Constant Proportion Portfolio Insurance

Intuition Publishing Pty Ltd
Updated Sep 24, 2020

Constant Proportion Portfolio Insurance (CPPI) is another way of creating structured notes and protects the principal invested. We discuss the basics of CPPI, and give an example using two scenarios. We finish with a look at the CPPI trading strategy.

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