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NEW QUESTION: 1
Mark Waiters' risk aversion is relatively high compared to other individual investors. Waiters is interested in generating some income on his equity portfolio. Walters decides to establish a covered call position on CGF stock and simultaneously establish a protective put position on HSD stock. After establishing the covered call and protective put positions, which of the following would least likely describe Walters' portfolio, relative to the positions before adding the options?
A. The HSD position will have a higher break even price and less downside risk.
B. The HSD position will have lower upside potential and less downside risk.
C. The CGF position will have a lower break even price and more upside potential.