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24. Suppose Sammy has invested $500,000 in Facebook bonds. He wants to insure his investment in case Facebook goes bankrupt. Which of the following would

24. Suppose Sammy has invested $500,000 in Facebook bonds. He wants to insure his investment in case Facebook goes bankrupt. Which of the following would be a good strategy for Sammy?

A.

Covered call
B.

Credit default swap
C.

Protective Put
D.

Protective call

25. Suppose Sammy has invested $500,000 in Facebook stock He wants to insure his investment in case Facebook stock drops a large amount. Which of the following would be a good strategy for Sammy?

A.

Covered call
B.

Credit default swap
C.

Protective Put
D.

Protective call

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