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:

Franchise

A licensed privilege to operate a business under a larger company's brand and operational model, often including a specific geographic area.

Franchise Rule

A regulation designed to govern the sale of franchises, requiring franchisors to provide potential franchisees with disclosure documents containing vital details about the franchise.

Federal Trade Commission

A U.S. government agency aimed at protecting consumers and ensuring a strong competitive market by enforcing antitrust and consumer protection laws.

Franchisor

A person or company that grants the license to a third party for the conducting of a business under the franchisor's marks, name, and business model.