When You Purchase a Put Option While Still Holding the Underlying

question 94

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.
• E)downside put.

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Definitions:

Operating Profit

Earnings before interest and tax (EBIT), indicating the profit a company makes from its normal business operations.

Loss Figures

Financial metrics indicating the amount of money a business has lost over a specific period.

Reportable Segment

A distinct business segment of a company that can generate its own revenues and expenses and whose operating results are regularly reviewed by the company's management.

Operating Segment

A component of an enterprise that engages in business activities from which it may earn revenues and incur expenses, including segments with intersegment revenues.