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Which of the following statements about the collar strategy is NOT true? A) It involves buying...

Which of the following statements about the collar strategy is NOT true?

A) It involves buying the underlying stock, selling a call, and buying a put with a lower strike price.

B) It is a bearish strategy.

C) Its profit is similar to the profit of a bull spread.

D) It gives up some upside potential in exchange for some downside protection.

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Answer #1

the following statements about the collar strategy is not true:

B)  It is a bearish strategy.

This is because its profit is similar to the profit of a bull spread.

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