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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Fundamentals Of Investments Valuation And Management

ISBN: 9781266824012

10th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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