A Protective Put Written on a Portfolio (Rather Than a Single

question 46

Multiple Choice

A protective put written on a portfolio (rather than a single stock) is known as ________.

• A) portfolio insurance
• B) put-call parity
• C) a warrant
• D) Black-Scholes

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Definitions:

Consumption Bundle

A combination of goods and services that a consumer chooses to consume at a given time.

Prices

The total monetary value expected, called for, or delivered in payment for an object.

Laspeyres Price Index

A price index used to measure the change in the cost of purchasing a fixed basket of goods and services over time, based on the quantities purchased in the base period.

Consumption Bundle

A set of goods or services that an individual or household chooses to consume within a given period, reflecting their preferences and budget constraint.