Assume that you have some shares of stock in ABC Inc. Why do we say that if you also purchase a put option on the same s

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

Assume that you have some shares of stock in ABC Inc. Why do we say that if you also purchase a put option on the same s

Post by answerhappygod »

Assume that you have some shares of stock in ABC Inc. Why do wesay that if you also purchase a put option on the same stock, theprice paid to buy the put option is like paying an insurancepremium?
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Top
Post Reply

Return to “Archived Questions & Answers”