The purchase often of a series of put options with multiple exercise dates results in a
A)open interest.
B)pull-to-par.
C)cap.
D)floor.
E)collar.

Question

Quizplus · Accepted Answer

Purchasing a series of put options with multiple exercise dates creates a "floor," which is a strategy used to protect against the decline in the price of an asset. It sets a minimum price level that the asset can be sold for, thus providing a hedge against significant losses.

The Purchase Often of a Series of Put Options with Multiple