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To hedge a short share position one can short the put

Exercise

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

Reference No:- TGS02938056

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