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1. The primary purpose of a protective put is to: A) ensure a maximum purchase price in the future. B) offset an equivalent call option. C) limit the downside risk of asset ownership. D) lock in a risk-free rate of return on a financial asset. E) increase the upside potential return on an investment..

Respuesta :

Answer: C) limit the downside risk of asset ownership

Explanation:

The protective put is a strategy I risk-management which is utilized by the investors in order to help prevent a loss in an asset or stock.

Protective puts helps to act as an insurance by giving protection from the decline of the price of the asset.

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