Which Combination Is Referred to as a Protective Put? Assume

question 68

Multiple Choice

Which combination is referred to as a protective put? Assume all sales and purchases refer to ABC stock and its option contract.

• A)Buying 100 shares of stock and writing one put option contract
• B)Selling a put option contract and buying an offsetting call option contract
• C)Buying 300 shares of stock and selling three call option contracts
• D)Buying a put option contract and buying 100 shares of stock
• E)Buying a put option contract and selling a call option contract with the same strike price and expiration date

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Definitions:

Emotional Aspects

Emotional aspects refer to the components of experiences and consciousness that are related to feelings, mood, and emotional states.

Data Collection

The systematic approach to gather information from a variety of sources to get a complete and accurate picture of an area of interest.

Personal Construct Theory

A psychological theory positing that individuals organize their experiences through a set of personal constructs, which are used to predict and control events.

Psychoanalysis

Psychoanalysis is a therapeutic method and theory of psychological disorders, originating by Sigmund Freud, which emphasizes unconscious motivations and conflicts.