Which of the Following Describes a Protective Put

question 1

Multiple Choice

Which of the following describes a protective put?

• A) A long put option on a stock plus a long position in the stock
• B) A long put option on a stock plus a short position in the stock
• C) A short put option on a stock plus a short call option on the stock
• D) A short put option on a stock plus a long position in the stock

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Definitions:

Commercialization

The full introduction of a complete marketing strategy and the launch of the product for commercial success.

Marketing Strategy

A plan of action for developing, pricing, distributing, and promoting products that meet the needs of specific customers.

Advertising

A paid form of nonpersonal communication transmitted through mass media, such as television commercials or magazine advertisements.