Option D. Short call and long put is the following strategies makes a profit when the stock price declines and loses money when the stock price increases. Option d is the correct option of the given statement.
Accordingly, purchasing a call option or a put option is referred to as a long call position and vice versa. The term "Short" also refers to each time you sell an option. Accordingly, selling a call option and selling a put option are also known as short positions for the call and put, respectively.
Long calls and long puts are the two different forms of long options. A long call option allows you to purchase, or "call," shares of a certain stock at a predetermined price at a later time. In contrast, a long put option allows you to sell, or put, shares of that stock at a future date for a predetermined price.
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