Hedge Fund Incentive Fees Are Essentially

Multiple Choice

Hedge fund incentive fees are essentially

A) put options on the portfolio with a strike price equal to the current portfolio value
B) put options on the portfolio with a strike price equal to the expected future portfolio value
C) call options on the portfolio with a strike price equal to the expected future portfolio value
D) call options on the portfolio with a strike price equal to the current portfolio value
E) straddles