Explain how a protective put is like purchasing insurance, Finance Basics

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Explain how a protective put is like purchasing insurance

Explain how a protective put is like purchasing insurance on a stock ? Why is choosing an exercise price on a protective put like deciding which deductible to take on an insurance policy?

Discuss and compare the two bullish strategies of buying a call and writing a put. Why would one strategy be preferable to the other?

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Finance Basics: Explain how a protective put is like purchasing insurance

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Finance Basics: Explain how a protective put is like purchasing insurance

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