February 16th, 2019, 9:20 pm
I think both answers are wrong, but largely because the question was not posed in very readable English. Both the headline and the first couple of sentences are highly suggestive of a put written on the portfolio, which is certainly cheaper than a portfolio of puts on the individual assets (barring the pathological cases of a single asset portfolio and a portfolio of perfectly correlated assets). Since there is no suggestion of active trading of the portfolio, the passport option is also not right (I was involved in hedging a real one of these sometime around 2001 - it's a stupid product). So, I think the real answer is to search for "basket option" and see where that takes you. As usual, Wikipedia is a perfectly fine place to start...