The strategy of combining the use of futures or options contracts on a stock index with program trading is known as
A)trading with algorithms.
B)downside insurance.
C)portfolio insurance.
D)spread the risk trading.

Question

Quizplus · Accepted Answer

Portfolio insurance is a strategy that involves using futures and options on stock indexes in conjunction with program trading to protect a portfolio against market declines.

The Strategy of Combining the Use of Futures or Options