Which Combination of Positions Will Tend to Protect the Owner

question 113

Multiple Choice

Which combination of positions will tend to protect the owner from downside risk?

• A) Buy the stock and buy a call option
• B) Sell the stock and buy a call option
• C) Buy the stock and buy a put option
• D)Buy the stock and sell a put option

---

Definitions:

Phase

A stage in a cycle of changes or in the variation of a periodic function, especially referring to the relationship between oscillations or waves in a system.

RC Parallel Circuit

A circuit configuration consisting of resistors and capacitors connected in parallel, affecting the total impedance and phase angle of the circuit.

R

A symbol often used to represent resistance in electrical circuits.

Phase Angle

A measurement, often in degrees or radians, that describes the difference in phase between two waveforms, significant in AC circuits and signal processing.