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Suppose you own 200 shares in AAPL and would like to protect your position from an unexpected drop in stock price. The prudent way to protect yourself would be to:   buy a call option short the stock c.   buy a put option

Suppose you own 200 shares in AAPL and would like to protect your position from an unexpected drop in stock price. The prudent way to protect yourself would be to:   buy a call option short the stock c.   buy a put option

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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  1. Suppose you own 200 shares in AAPL and would like to protect your position from an unexpected drop in stock price. The prudent way to protect yourself would be to:

 

  1. buy a call option
  2. short the stock

c.   buy a put option 

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