You invest in the stock of Valleyview Corp. and purchase a put option on Valleyview Corp. This strategy is called a ________.

Question

Quizplus · Accepted Answer

The strategy of investing in a stock and purchasing a put option is called a protective put. This strategy involves buying shares in a company to generate potential gains while also buying a put option to limit potential losses. The put option acts as a form of insurance against potential declines in the stock's price. This strategy is also known as a married put. The other options listed are different options strategies.

You Invest in the Stock of Valleyview Corp