protective puts

Compute your gain or loss on the combined position if the stock price increases 20% and decreases 20% at the time of expiry.

Unit 7 Discussion Topic 2 Topic 2: Hedging Hedging is arguably the most important function of an options trader. The ability to limit the amount of risk a portfolio is subjected to is a vital function. You are going to explore one method of hedging risks: protective puts. Before starting this assignment, you might want […]

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