The Primary Purpose of a Protective Put Is

question 23

Multiple Choice

The primary purpose of a protective put is

• A) The increase in potential gains
• B) The guarantee of a higher return
• C) The elimination of downside risk
• D) The receipt of the option premium
• E) The increase in risk and thus an increase in returns

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Definitions:

Extracellular Matrix

A complex network of proteins and carbohydrates surrounding cells, providing structural and biochemical support to the surrounding cells.

Ground Substance

The unstructured material that fills the space between the cells and contains the fibers in connective tissue.

Connective Tissue

Tissue that supports, binds together, and protects organs in the body, consisting of various cell types within an extracellular matrix.

Heparin

A medication and naturally occurring substance that prevents blood from clotting, commonly used in medical settings.