Hedging risk in an investment vehicle

A method performed by an investor in an investment vehicle, comprising the steps of:

• investing in the vehicle and initiating the vehicle to purchase in response to the investment, an option to protect against certain risks of assets owned by the vehicle;
• initiating the vehicle to sell in response to the purchase of the option, an option corresponding to the purchased option and offsetting the purchased option at least in part;
• and initiating the calculation in a non-transitory memory of a computer of (1) said options, (2) cash flows and security priorities of the vehicle arranged to protect designated protected investors, and (3) proceeds of the sale of the sold option so that the proceeds offset the cost of the purchased option for benefit of non-protected investors;
• and
• receiving a cash flow from the investment vehicle.

A method, comprising the steps of:

• computing in a non-transitory memory of a computer data defining an option for protection of cash flows to be paid by an investment vehicle to designated investors,
• purchasing an option in accordance with the data computed for the option,
• computing in a non-transitory memory of a computer data defining an offsetting option offsetting the purchased option at least in part, and
• selling the offsetting option;
• and
• computing in a non-transitory memory of a computer a structure for the cash flows and security priorities of the investment vehicle so that the purchased option protects the protected investors, and the proceeds of the sale of the sold offsetting option offsets the cost of the purchased option for benefit of non-protected investors.