A protective put strategy is
A)a long put plus a long position in the 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 short call on the same underlying asset.
E)None of the options

Question

Quizplus · Accepted Answer

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.

A Protective Put Strategy Is