Downside Protection


 

Home
Site Map
Add Term
Search
About Us
Contributors

Downside Protection

Generally used in connection with covered call writing, this is the cushion against loss, in case of a price decline by the underlying security, that is afforded by the written call option. Alternatively, it may be expressed in terms of the distance the stock could fall before the total position becomes a loss (an amount equal to the option premium), or it can be expressed as percentage of the current stock price.



Downside Protection

Similar Matches

Labor standards argument for protection

Labor standards argument for protection

The view that trade restrictions (trade sanctions) should be used as a tool to improve labor standards, limiting imports, for example, from countries that do not enforce such labor rights as freedom of association and collective bargaining.


Import protection

Import protection

See protection.


Nominal rate of protection

Nominal rate of protection

The protection afforded an industry directly by the tariff and/or NTB on its output, ignoring effects of other trade barriers on the industry's inputs. Contrasts with the ERP.


Marine Mammal Protection Act

Marine Mammal Protection Act

The 1972 U.S. law prohibiting the "taking" (harassing, hunting, capturing, or killing) of marine mammals, and also prohibiting the import of any marine mammal product or any fish that has been associated with the taking of marine mammals. See tune-dolphin case.


Patriotism argument for protection

Patriotism argument for protection

The view that one is helping one's country by buying domestically produced goods instead of imports. In a nondistorted economy, this is not correct, since the country can do better producing where it has a comparative advantage rather than using scarce resources where it does not.


Further Suggestions

Consumer Credit Protection Act of 1968
court of protection
Protectionism
Safeguards protection
Labor standards argument for protection
home responsibilities protection
Self-sufficiency argument for protection
Effective rate of protection
Foreign investment argument for protection
Exchange rate protection
Environmental protection argument for a trade intervention
Content protection
Infant industry protection
Protectionism
mortgage protection
protection applied
Domestic content protection
Tariff protection
Retirement Protection Act of 1994
Domestic distortions argument for protection
Endogenous protection
Investor Protection Scheme
Cultural argument for protection
Externalities argument for protection
Building Societies Investor Protection Scheme


 
All rights Reserved. Do not copy without permission.