Abstract
This paper presents a spreadsheet application for performance evaluation of three put strategies adopted in practice. In contrast to the single-period protective put found in finance textbooks, these strategies roll over short maturity options over an extended period. The spreadsheet application provides the instructor with a pedagogical tool to illustrate and explain the measurement of insurance costs, the asymmetric impact of the options on the return distribution of the stock, the impact of exercise price on downside protection and upside reduction, and the dependence of the return on the put strategy on the stock price path.
Recommended Citation
(2026)
"A Spreadsheet Application to Evaluate the Performance of Protective Puts,"
Journal of Economics and Finance Education: Vol. 7:
Iss.
2, Article 3.
Available at:
https://scholarship.rollins.edu/jefe/vol7/iss2/3
