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Which of the Following Describes a Protective Put

Question 1

Multiple Choice

Which of the following describes a protective put?


A) A long put option on a stock plus a long position in the stock
B) A long put option on a stock plus a short position in the stock
C) A short put option on a stock plus a short call option on the stock
D) A short put option on a stock plus a long position in the stock

Correct Answer:

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