A protective put written on a portfolio (rather than a single share)is known as
A)portfolio insurance.
B)a warrant.
C)Black-Scholes.
D)put-call parity.

Question

Quizplus · Accepted Answer

A protective put written on a portfolio is a strategy known as portfolio insurance. It involves buying a put option on a portfolio to protect against a decline in its value. This strategy is commonly used by institutional investors and fund managers.

A Protective Put Written on a Portfolio (Rather Than a Single