A Collar with a Net Outlay of Approximately Zero Is

question 3

Multiple Choice

A collar with a net outlay of approximately zero is an options strategy that

• A)combines a put and a call to lock in a price range for a security.
• B)uses the gains from sale of a call to purchase a put.
• C)uses the gains from sale of a put to purchase a call.
• D)combines a put and a call to lock in a price range for a security and uses the gains from sale of a call to purchase a put.

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Definitions:

SMTP

Simple Mail Transfer Protocol, a standard for email transmission across the Internet.

DHCP

Dynamic Host Configuration Protocol, a network management protocol used to automatically assign an IP address to devices on a network.

HTTP

The essential protocol for sending web pages across the internet, known as HyperText Transfer Protocol.

TCP

Transmission Control Protocol, a core protocol of the Internet Protocol Suite that provides reliable, ordered, and error-checked delivery of data.