A Collar with a Net Outlay of Approximately Zero Is

question 54

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) both a and b.
• E) both a and c.

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Definitions:

Add

A mathematical operation that combines two or more amounts to get a total.

Simp

In colloquial use, shorthand for 'simpleton'; in internet culture, someone overly submissive to someone they're attracted to without reciprocation.

Conj

A conjunction is a logical operator that connects two statements in a way that the resulting statement is true only if both connected statements are true.

MP

Modus Ponens, a fundamental rule of logical deduction allowing one to derive a conclusion from a conditional statement and its antecedent.