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Hedging Dynamic Fund Protection: A Static Versus Dynamic Comparison

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IIM Kozhikode Society & Management Review

Published online on

Abstract

IIM Kozhikode Society & Management Review, Volume 15, Issue 1, Page 7-20, January 2026.
The static nature of the downside protection offered by a standard Put option can motivate investors to use exotic option contracts like dynamic fund protection (DFP), which protects the underlying asset value throughout its life. DFP has a path-dependent ...