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3. Which of the following is most similar to writing a covered call? writing a naked...

3. Which of the following is most similar to writing a covered call?

  1. writing a naked call
  2. buying a protective put
  3. writing a naked put
  4. writing a covered put
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Answer #1

Please find below the solution.. let me know if you need any clarification..

correct answer is option : B. Buying a protective put.

Both covered call and proctative put provide the cap of loss in the portfolio.

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