20.1 Bull and bear strategies

20.2 Return enhancement

20.3 Value protection strategies

20.4 Vertical, horizontal and diagonal spreads

20.5 Other option strategies

20.6 Using stock index futures and options

20.7 Portfolio insurance

20.8 Guaranteed equity funds

20.9 Warrants and convertibles

20.10 Exotic equity derivatives

Equity risk manifests itself as a variation in the value of individual shares, or that of an equity portfolio. This is essentially a price risk, as indeed is currency risk. The methods used to manage equity risk therefore have much in common with those discussed in Chapter 17 for handling currency risk. As we proceed though the various risk management techniques in this chapter, the close parallels ...

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