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by zaizai
April 11th, 2012, 2:41 pm
Forum: The Quantitative Finance FAQs Project
Topic: What is CPPI?
Replies: 13
Views: 158629

What is CPPI?

<t>I'm thinking: from CPPI buyer's perspective, gamma is positive (as graphed in the Boulier's paper). However, from seller's (institutional) perspective, gamma is negative. Analogously, if bank sold a vanilla call, buyer gets positive gamma while bank gets negative gamma. From buy high sell low per...