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To hedge a short share position one can short the put

To hedge a short share position, one can short the put option on the share.

• What is the investor's intention in selling the put option?

• What does the strike indicate when the trader has zero risk tolerance?

• Under what circumstances will the trade prove to be effective?

• What are her risks?

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Finance Basics: To hedge a short share position one can short the put

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Finance Basics: To hedge a short share position one can short the put

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