28. A trust manager for a stock portfolio wants to minimize short-term downside risk using Dow put...
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28. A trust manager for a stock portfolio wants to minimize short-term downside risk using Dow put options. The options expire in 60 days, have a strike price of 9,700, and have a premium of . The Dow is currently at 10,100. How many options should she use? Long or short? How much will this cost? If the portfolio is perfectly correlated with the Dow, what is the portfolio value when the option expires, including the premium paid?
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Related Book For 
Financial Markets And Institutions
ISBN: 9780134519265
9th Edition
Authors: Frederic S. Mishkin, Stanley G. Eakins
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