#TITLE_ALTERNATIVE#

• Main Author: NAPIT ANGGA PRATAMA (NIM 10105029), RIDWAN
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/11275
• Institution: Institut Teknologi Bandung

Technological and innovation developments in the financial world is growing rapidly. Including investment activities by using a highly risk assets like stocks. The value of stock portfolio is possible having a price decline quite sharply, especially for stocks that have a high level fluctuations. Many alternative solutions that can be used to avoid the risk of high decline in value of stock portfolios, one with a strategy of Portfolio Insurance. This strategy uses the put option as a basic strategy. The strategy are divided into two kinds, namely for the portfolio consisting of one share stock and more than one stock. In this Final Project, using the simulation can be shown how this Portfolio Insurance was able to avoid the risk of decline in stock value by maintaining a portfolio that you have on a particular value. By using Riesz sub-space and Fundamental Set of States analysis can be shown that the strategy also made on certain conditions will not depend on stock prices. If Fundamental set of states is not exist and asset span is not a Riesz sub-space, then the strategy that will be made will be dependend to stock prices. This strategy can be applied to national companies stocks.