Assume the risk-free rate is zero an investor sells puts, Financial Management

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Assume the risk-free rate is zero an investor sells puts

The current price of a non-dividend-paying stock is $30. Over the next six months it is expected to rise to $36 or fall to $26. Assume the risk-free rate is zero. An investor sells puts options with a strike price of $32. Which of the following hedges the position?

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Financial Management: Assume the risk-free rate is zero an investor sells puts

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Financial Management: Assume the risk-free rate is zero an investor sells puts

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