4. Option Strategies (LO3, CFA5) Which statement does not describe an at-the-money protective put position (comprised of owning the stock and the put)?

a. It protects against loss at any stock price below the strike price of the put.

b. It has limited profit potential when the stock price rises.

c. It returns any increase in the stock’s value, dollar for dollar, less the cost of the put.

d. It provides a pattern of returns similar to a stop-loss order at the current stock price.