Portfolio Insurance and October 19th

@article{Leland1988PortfolioIA,
  title={Portfolio Insurance and October 19th},
  author={H. Leland.},
  journal={California Management Review},
  year={1988},
  volume={30},
  pages={80 - 89}
}
  • H. Leland.
  • Published 1988
  • Economics
  • California Management Review
Portfolio insurance is a hedging technique that allows the maximum exposure to highreturn assets while providing reasonable assurance that a prespecified minimum return will be achieved. While it is true that the chaotic market conditions of October 19th made portfolio insurance more costly than normal, it still provided substantial protection. Portfolio insurance did not significantly contribute to the decline of stock prices on October 19th, rather the magnitude of the market fall was due to… Expand

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350 contracts of the S&P 500 Index Futures, representing a value of about $350 million. Regulations currently under review limited the extent of information dissemination of these trades
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