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:

Delegatee

A person to whom duties, responsibilities, or authority is transferred from another, the delegator.

Delegator

A person or entity that assigns tasks or authority to others to carry out specific duties.

Obligee

The party in a contractual agreement who is owed a performance or payment by another party (the obligor).

Assignee

An individual or entity to whom rights or interests are transferred by another, known as the assignor.