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The primary advantage of using a protective put strategy as opposed to a broker order for a stop-loss sale is that the options approach: Group
The primary advantage of using a protective put strategy as opposed to a broker order for a stop-loss sale is that the options approach:
Group of answer choices
A) Maintains the opportunity for upside profit potential.
B) Is riskier, and hence will better match the volatility of the underlying stock.
C) Will probably have a maturity exactly matching your desired investment horizon.
D) Provides a guaranteed floor value for the stock investment.
E) Has less up-front cost.
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