If you are interested in creating a retirement portfolio where the downside is protected and you retain at least some upside, the following portfolio will be consistent with your goal:
A) A long stock position plus a long collar position.
B) A short position in a protective put structure.
C) A long position in a covered call structure.
D) A short collar.

Question

Quizplus · Accepted Answer

A long stock position plus a long collar position is consistent with the goal of creating a retirement portfolio with downside protection and retaining at least some upside. The long collar involves buying a put option to protect against downside risk and selling a call option to generate income, which limits the potential upside but still allows for some appreciation in the stock. This combination can provide a level of protection while still allowing for potential gains.

If You Are Interested in Creating a Retirement Portfolio Where