Which One of the Following Is the Primary Purpose of a Protective

question 16

Multiple Choice

Which one of the following is the primary purpose of a protective put?

• A)profit from an expected future increase in the underlying stock's value
• B)guarantee a higher return than is possible from just owning the underlying security
• C)offset the risk associated with a decrease in the value of the underlying asset
• D)receipt of the option premium
• E)increase in potential rate of return due to increase in risk

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Definitions:

Political strife

Conflict or struggle within a country involving various political factions, often leading to unrest or civil disorder.

Reproductive health

A state of complete physical, mental, and social well-being in all matters relating to the reproductive system at all stages of life.

Gender inequality

The social, economic, and cultural condition in which people of different genders do not have equal rights, opportunities, or responsibilities.

Cardiovascular health

This refers to the health of the heart and blood vessels, aiming to prevent heart diseases and maintain function.