A Hedge Strategy Known as a Collar Agreement Involves the Simultaneous

Multiple Choice

A hedge strategy known as a collar agreement involves the simultaneous

A) purchase of an in-the-money put and purchase of an out-of-the-money call on the same underlying asset with same expiration date and market price.
B) sale of an out-of-the-money put and sale of an out-of-the-money call on the same underlying asset with same expiration date and market price.
C) purchase of an in-the-money put and purchase of an in-the-money call on the same underlying asset with same expiration date and market price.
D) purchase of an out-of-the-money put and sale of an out-of-the-money call on the same underlying asset with same expiration date and market price.
E) sale of an in-the-money put and purchase of an in-the-money call on the same underlying asset with same expiration date and market price.