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Protective Puts Offer an Advantage Over Stop-Loss Orders in That

Question 59

Multiple Choice

Protective puts offer an advantage over stop-loss orders in that


A) the stop-loss order will be executed as soon as the stock price reaches the trigger point,without allowing for a subsequent rebound,while the put allows the holder to wait.
B) the stop-loss order is costless to place.
C) the stop-loss order may actually be executed at a price below the trigger price.
D) both a and b are true.
E) both a and c are true.

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