SIE practice questionhardProtective puts
Buying a protective put most benefits an investor who is:
- ALong the stock and worried about a decline✓ Correct answer
- BShort the stock and expecting a rally
- CShort calls
- DLong puts only
Explanation
Why A — Long the stock and worried about a decline
Protective puts insure long stock positions against loss. Other scenarios do not fit.
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