Re: Money Withdrawal Strategy
We should distinguish between: - static trading strategies: one only needs to trade at the beginning and at the end to ensure the payoff. - dynamic trading strategies: between the start and the maturity of the derivative, one needs to trade more than once to ensure the payoff at maturity. A good example is the constant proportion portfolio insurance (CPPI), but options with intermediary observation dates or digital features checked on a regular basis also fall into this category.
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