Which of the following strategies makes a profit if the stock price declines and loses money when the stock price increases?
A) Long call and short put
B) Long call and long put
C) Short call and short put
D) Short call and long put

Question

Quizplus · Accepted Answer

Short call and long put is a bearish strategy and makes a profit when the stock price declines. On the other hand, it loses money when the stock price increases.

Which of the Following Strategies Makes a Profit If the Stock