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Which Combination Is Referred to as a Protective Put? Assume

Question 68

Multiple Choice

Which combination is referred to as a protective put? Assume all sales and purchases refer to ABC stock and its option contract.


A) Buying 100 shares of stock and writing one put option contract
B) Selling a put option contract and buying an offsetting call option contract
C) Buying 300 shares of stock and selling three call option contracts
D) Buying a put option contract and buying 100 shares of stock
E) Buying a put option contract and selling a call option contract with the same strike price and expiration date

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