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Downside Protection |
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Downside ProtectionGenerally 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 MatchesIntellectual property protectionIntellectual property protectionLaws that establish and maintain ownership rights to intellectual property. The principal forms of IP protection are patents, trademarks, and copyrights. Tariff protectionTariff protectionProtection provided by a tariff. Mortgage protectionMortgage protectionTerm assurance to cover the repayment of a mortgage in the event of the death of the mortgagor during the period of the loan.In the case of a repayment mortgage the capital sum outstanding is gradually reduced over the term of the loan (albeit slowly during the initial years when the majority of the repayments are paying the interest) so that decreasing term assurance would be incorporated in the policy. For an endowment mortgage where the sum assured and the death benefit are at least equal to the amount of the loan throughout the term of the loan, level term assurance would be apt. Fairness argument for protectionFairness argument for protectionThe view that it is unfair to force domestic firms to compete with foreign firms that have an advantage, either in terms of low wages or due to foreign government policies. This misinterprets economic activity as a game, the purpose of which is to win, rather than as a means of using limited resources to satisfy human needs. See level playing field. ProtectionismProtectionismNotion that governments should protect domestic industry from import competition by means of tariffs, quotas, and other trade barriers. Further SuggestionsPatriotism argument for protectionEffective protection court of protection Import protection Employment argument for protection Environmental protection argument for a trade intervention National defense argument for protection Political economy of protection Investor Protection Scheme Cultural argument for protection Externalities argument for protection Domestic distortions argument for protection Nominal rate of protection Payment protection insurance home responsibilities protection Consumer Credit Protection Act of 1968 Second-best argument for protection Safeguards protection Protection Labor standards argument for protection Administered protection Balance of payments argument for protection Marine Mammal Protection Act loan protection policy Building Societies Investor Protection Scheme |
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