Home >  Blossary: Options and Corporate Finance  >  Term: protective put strategy
protective put strategy

Protective put strategy is basically the use of a combination of options to build a complex contract that has the ability to bring down the total risk that is attached to the transaction. It is done by buying a put option along with the asset which should limit the losses but increase the ceiling of profits.

0 0

Options and Corporate Finance

Category: Education

Total terms: 15

Creator

  • SingleWriter
  • (Karachi, Pakistan)

  •  (Bronze) 46 points
  • 100% positive feedback
© 2024 CSOFT International, Ltd.