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:

Straight Line Depreciation

A method of allocating the cost of an asset evenly across its useful life, resulting in a fixed amount of depreciation expense each period.

Depreciated Value

The decline in value of an asset over time because of deterioration or becoming outdated.

Business

An organization or enterprising entity engaged in commercial, industrial, or professional activities.

Vertical Line

A straight line that goes from up to down (or down to up) and does not slant; in Cartesian coordinates, it is described by an equation of the form \(x = a\).