Holding a put option and the underlying security at the same time is an example of
A) Collar
B) Straddle
C) Income generation
D) Portfolio insurance
E) None of the above

Name: Holding a put option and the underlying security at the same time is an example of A) Collar B) Straddle C) Income generation D) Portfolio insurance E) None of the above
Brand: Quizplus
Rating: 4.9 (40 reviews)

Question

Quizplus · Accepted Answer

Holding a put option along with the underlying security is a strategy known as portfolio insurance, as it helps protect against downside risk.

Holding a Put Option and the Underlying Security at the Same