Examlex
An envelope is acquired during which of the following steps?
Protective Put
A defensive financial strategy that involves buying a put option for a stock that is already owned, giving the holder the right to sell the stock at a specified price, thereby providing a hedge against potential declines.
Downside Risk
The potential for loss in value of an investment, often evaluated in comparison to the expected return.
Seller Of A Put
An investor who sells put options in the expectation that the underlying stock price will remain above the option's strike price.
Purchase Shares
The act of buying ownership units in a company, often done through a stock exchange, to potentially earn dividends or sell at a higher price in the future.
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