A Protective Put Strategy Is

question 13

Multiple Choice

A protective put strategy is

• A)a long put plus a long position in the underlying asset.
• B)a long put plus a long call on the same underlying asset.
• C)a long call plus a short put on the same underlying asset.
• D)a long put plus a short call on the same underlying asset.

---

Definitions:

Input Prices

The costs associated with the factors of production used in the creation of goods or services, such as raw materials and labor.

Marginal Product

The additional output produced when one additional unit of a resource is employed.

Minimizing Costs

Minimizing costs involves finding the most efficient way to operate that lowers expenses without sacrificing the quality or quantity of output.

Rental Rate

The price paid for the temporary use of a good, service, or property, typically expressed as a fee per time period.