Abstract: A method of protecting at least a portion of an initial investment value of an investment made by one or more investors, comprising the steps of: (a) determining using an option-based instrument calculator: (i) a first value of a first set of put option-based instruments at initial investment in the first set of put option-based instruments, the first set of put option-based instruments having a first underlying reference; (ii) a second value of a first set of call option-based instruments at initial investment in the first set of call option-based instruments, the first set of call option-based instruments having a second underlying reference, the first underlying reference being the same as or substantially correlated to the second underlying reference; and (iii) a third value of a second set of option-based instruments at initial investment in the second set of option-based instruments, the second set of option-based instruments having a third underlying reference; so that the sum of the first value, the s

Abstract: A system and method is provided for calculating and generating a predetermined payment obligation. A hypothetical portfolio of securities is selected having an initial value. A financial instrument is issued that references the hypothetical portfolio, the financial instrument having a fixed term. A guaranteed minimum withdrawal benefit is deducted from a net asset value of the hypothetical portfolio on a periodic basis for the fixed term. The net asset value of the hypothetical portfolio is determined to be zero if the net asset value of the hypothetical portfolio falls below a predetermined amount of funds. An adjustment in the number of securities in the hypothetical portfolio is calculated with a computer on a periodic basis according to an algorithm, the algorithm taking into account at least one of a prevailing market value of the securities in the hypothetical portfolio and a net present value of an obligation to deduct the predetermined amount of funds until the end of the fixed term.

Abstract: A method of protecting at least a portion of an initial investment value of an investment made by an investor including the steps of: providing a business entity; electing the business entity to be treated as a regulated investment company; holding positions using the business entity in a set of put-option based instruments having a first underlying reference and a set of call-option based instruments having a second underlying reference, the first underlying reference being the same as or substantially correlated to the second underlying reference, so that the sets of put-option based instruments and call-option based instruments provide the at least a portion of the initial investment value at maturity of the investment; and making available the at least a portion of the initial investment value to the investor upon the maturity of the investment.

Abstract: A method of protecting at least a portion of an initial investment value of an investment made by an investor including the steps of: registering a C-corporation; electing the C-corporation to be treated as a regulated investment company; holding positions using the C-corporation in a set of put-option based instruments having a first underlying reference and a set of call-option based instruments having a second underlying reference, the first underlying reference being the same as or substantially correlated to the second underlying reference, so that the sets of put-option based instruments and call-option based instruments provide the at least a portion of the initial investment value at maturity of the investment; and making available the at least a portion of the initial investment value to the investor upon the maturity of the investment.

Abstract: A method for generating a hedged financial product having a guaranteed minimum withdrawal benefit including the steps of: formulating a financial product having a guaranteed minimum withdrawal benefit which is defined by a payout calculated based on a function of an investment value of an underlying asset, the investment value being tied to a benchmark that changes based on a first algorithm; and hedging a risk associated with the guaranteed minimum withdrawal benefit by investing funds in one or more assets in accordance with a second algorithm which is a function of the first algorithm.