Question

Why did portfolio insurance not work well on October 19,1987 ? 

   Why did portfolio insurance not work well on October 19,1987 ?
Options, Futures, and Other Derivatives
Options, Futures, and Other Derivatives
John C. Hull 10th Edition
Chapter 19, Problem 7 ↓

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Portfolio insurance is a risk management strategy that involves using derivatives, such as options, to protect the value of a portfolio of assets against market downturns.  Show more…

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Why did portfolio insurance not work well on October 19,1987 ?
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