Which One of These Combinations Is a Protective Put

question 63

Multiple Choice

Which one of these combinations is a protective put?

• A)Writing identical puts and calls on the same asset
• B)Buying a put and buying the underlying asset
• C)Selling a call and buying the underlying asset
• D)Buying a call and selling the underlying asset
• E)Selling a put and buying the underlying asset

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Definitions:

Behaviors

The actions or reactions of a person or animal in response to external or internal stimuli.

Effective Team Member

An individual who contributes positively to the collective efforts of a group through collaboration, skill, and constructive communication.

Coordinates

Involves the numerical values that determine the precise position of a point in a space, often used in geographical mapping and graph plotting.

Manages

Directs the administration and organization of a business or project, coordinating efforts to achieve goals.