Which One of the Following Best Defines the Primary Purpose

question 59

Multiple Choice

Which one of the following best defines the primary purpose of a protective put?

• A)ensure a maximum purchase price in the future
• B)offset an equivalent call option
• C)limit the downside risk of asset ownership
• D)lock in a risk-free rate of return on a financial asset
• E)increase the upside potential return on an investment

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Definitions:

United States

A country primarily located in North America, consisting of 50 states, a federal district, five major self-governing territories, and various possessions.

Germany

Germany is a country in Central Europe known for its rich history, culture, economic strength, and contributions to arts, science, and technology.

Canada

A country located in the northern part of North America, known for its diverse landscapes, multicultural society, and advanced economy.

People Standing Too Close

An uncomfortable situation where individuals invade others' personal space, often leading to feelings of discomfort or anxiety.