To insure a stock,we generally combine:

Question

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To insure a stock, the best choice would be to combine a long put option with a long stock. This is because a long put option gives the holder the right to sell the underlying stock at a fixed price (strike price) until the expiration date of the option. In case the stock price falls below the strike price, the holder can exercise the option and sell the stock at a higher price than the market price, thereby limiting their losses. By combining a long put option with a long stock, the investor is able to limit their downside risk while still benefitting from any upside potential.

To Insure a Stock,we Generally Combine