If You Are Interested in Creating a Retirement Portfolio Where

question 9

Multiple Choice

If you are interested in creating a retirement portfolio where the downside is protected and you retain at least some upside,the following portfolio will be consistent with your goal:

• A)A long stock position plus a long collar position.
• B)A short position in a protective put structure.
• C)A long position in a covered call structure.
• D)A short collar.

---

Definitions:

Entrepreneurial Talent

The specific skills, creativity, and innovation that individuals bring to starting and managing new ventures or businesses.

Forgone Interest

The potential interest earnings lost by choosing to invest capital in one option over an alternative that offers a higher return.

Short-Run Adjustment

The process by which businesses alter their production levels or inputs in response to short-term changes in market conditions.

Local Bakery

A place of business that specializes in producing and selling bread, cakes, and other baked goods to consumers within a specific area.