One person could use one call option, one put option on the nd x. They could establish what people call a collar that expired at the end of 20 22. If the index declined by 15 % for that calendar year,. In this example, your capping your up id to finance downside protection. And people find that valuable. So let's pass forward. The hypothetical portfolio is still down, but the net impact is about a hundredd 85 thousand, or 12%. versus roughly 25 % on just outright exposure, no downside.

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