Which of the following statements about short selling is true? a. A short position may be hedged
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Which of the following statements about short selling is true?
a. A short position may be hedged by writing call options.
b. A short position may be hedged by purchasing put options.
c. Short-sellers may be subject to margin calls if the stock price increases.
d. Stocks that pay large dividends should be sold short before the ex-dividend date and bought afterward to take advantage of the large price declines in a short time period.
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Related Book For
Fundamentals Of Investments Valuation And Management
ISBN: 9781266824012
10th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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