Multiple Choice
Travis owns a stock that is currently valued at $45.80 a share. He is concerned that the stock price may decline so he just purchased a put option on the stock with an exercise price of $45. Which one of the following terms applies to this strategy?
A) Put-call parity
B) Covered call
C) Protective put
D) Straddle
E) Strangle
Correct Answer:
Verified
Correct Answer:
Verified
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