The practice of using options or dynamic hedging strategies to provide protection against investment losses while maintaining upside potential is called ________.

A) trading on gamma
B) index optioning
C) portfolio insurance
D) index arbitrage

Dynamic Hedging

A portfolio management strategy that involves continuously adjusting the hedge positions as the market conditions and prices of the underlying assets change.

Portfolio Insurance

Portfolio insurance is a strategy used by investors to hedge against market downturns by dynamically adjusting exposure to equities and typically involves the use of options or cash reserves.