Travis Owns a Stock That Is Currently Valued at $45

question 54

Multiple Choice

Travis owns a stock that is currently valued at $45.80 a share.He is concerned that the stock price may decline so he just purchased a put option on the stock with an exercise price of $45.Which one of the following terms applies to the strategy Travis is using?

• A)put-call parity
• B)covered call
• C)protective put
• D)straddle
• E)strangle

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