Which of the following strategies yields positive profits when the stock price is low but not when the stock price is high? a. Straddle
b. Bullish spread
c. Protective put
d. bearish spread

d. bearish spread

Explanation:

With a bearish spread, the investor believes the market to be heading for a price decline in the stock of interest. They will therefore purchase a put option on it. However, they also want to reduce the cost of the transaction so what they will do is to simultaneously buy 2 put options for the same asset for the same date of expiration but with different exercise prices.

If the price of the stock then falls, they will make a profit on both aand reduce costs.

answer; the correct answer should be (demonstrations); good luck

the answer would be price fixing, hope it