In addition, the price of actual puts has to be paid explicitly and "up-front," rather than primarily by forgone gains, as in portfolio insurance. As we shall see, after 1987 the price of the index puts most likely to be attractive as a floor to losses has consistently been high higher than it would be in a Black-Scholes world. These "up-front premium" costs could cause "sticker shock" (Voorhees 1988, p. 58), limiting the scale of the purchase of puts.

Donald MacKenzie, An Engine, Not a Camera, loc. 892