Question: For the CPPI formula (6.31), demonstrate that the strategy will breach the bond floor if S(ti)/S(ti1)1 < 1/m. Derive the value of an ATM put

For the CPPI formula (6.31), demonstrate that the strategy will breach the bond floor if S(ti)/S(ti−1)−1 < −1/m. Derive the value of an ATM put on such a strategy if m = 1.

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