A protective put strategy is
A. a long put plus a short call on the same underlying asset
B. a long put plus a long call on the same underlying asset
C. a long call plus a short put on the same underlying asset
D. a long put plus a long position in the underlying asset
Answer: Option D
Solution (By Examveda Team)
If you invest in a stock and purchase a put option on the stock you are guaranteed a payoff equal to the exercise price; thus the protection of the put.This Question Belongs to User Ask Question >> Miscellaneous
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