The Holder of a Protective Put Has the Equivalent of an Insurance

question 34

True/False

The holder of a protective put has the equivalent of an insurance policy on the stock.

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Definitions:

Payment Plan

A payment plan is an agreement to pay off an owed amount over a designated period, through specified number of installments.

Order Of Relief

A court order that provides a debtor protection from creditors under bankruptcy proceedings, initiating the automatic stay.

Preferential Payment

A payment made by an insolvent debtor that gives preferential treatment to one creditor over another.

Insolvent Debtor

A debtor who cannot pay debts in a timely fashion.