A method that would not protect an investor from a loss if the market value of his portfolio fell would be
A) stop order.
B) sell a put option.
C) create a synthetic put.
D) buy an insurance policy.

Question

Quizplus · Accepted Answer

Selling a put option does not protect an investor from a loss if the market value of their portfolio falls. Instead, it involves the investor receiving a premium for the option, but they might have to buy the underlying asset at the strike price if the option is exercised, which could lead to a loss if the market value has decreased.

A Method That Would Not Protect an Investor from a Loss