What strategy is designed to ensure a value within the bounds of two different stock prices?
A) Collar
B) Covered Call
C) Protective put
D) Straddle

Question

Quizplus · Accepted Answer

A collar is a strategy designed to ensure a value within the bounds of two different stock prices - one higher and one lower. It involves simultaneously buying a protective put and selling a covered call in order to limit potential losses and gains. This strategy is useful for investors who want to protect their stock position without sacrificing too much of the upside potential.

What Strategy Is Designed to Ensure a Value Within the Bounds