P
Protective Put
Protective Put (3 graphs) A combination of a long put contract and a long position in the underlying. The combination is the risk equivalent of a long call with the same strike price- with some differences in the timing and desirability of early exercise if the put is American-style. A protective put sets a downside limit at expiration equal to the strike minus the put premium. See Married Put.
|
Glossary *
P
|