How a protective put is like purchasing insurance on stock

Reference no: EM131326054

Explain how a protective put is like purchasing insurance on a stock ? Why is choosing an exercise price on a protective put like deciding which deductible to take on an insurance policy?

Discuss and compare the two bullish strategies of buying a call and writing a put. Why would one strategy be preferable to the other?

Reference no: EM131326054

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How a protective put is like purchasing insurance on stock : Explain how a protective put is like purchasing insurance on a stock ? Why is choosing an exercise price on a protective put like deciding which deductible to take on an insurance policy?

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