Q-183.2. The profit pattern of a protective put is most similar to the pattern of which naked option trade? | Financial Risk Manager Part 1 Quiz - LeetQuiz
Financial Risk Manager Part 1
Explanation:
A protective put is long stock + long put. This combination creates a payoff that resembles a long call:
Both have limited downside
Both have unlimited upside
The put provides downside protection just as a call gives upside participation
Therefore, the profit pattern is most similar to a long call.
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Q-183.2. The profit pattern of a protective put is most similar to the pattern of which naked option trade?
