When You Purchase a Put Option While Still Holding the Underlying

question 77

Multiple Choice

When you purchase a put option while still holding the underlying stock, it is known as a ________.

• A) protective put
• B) protective call
• C) speculative put
• D) speculative call

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Definitions:

Aqueous Acid

An acid solution in which water is the solvent, often used in chemical reactions that require a proton source.

Stereochemical

Pertaining to the spatial arrangement of atoms in a molecule and the impact of this arrangement on its chemical behavior.

Regio-

A prefix in chemistry indicating the region or specific location in a molecule where a reaction takes place or a particular group is located.

Carbocation Rearrangement

A process in which a carbocation intermediate undergoes structural reorganization to form a more stable ion during a chemical reaction.