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1.36. On June 25, 2012, an investor owns 100 Google shares. As indicated in Table 1.3, the bid share price is $561.32 and a December
1.36. On June 25, 2012, an investor owns 100 Google shares. As indicated in Table 1.3, the bid share price is $561.32 and a December put option with a strike price of $520 costs $26.10. The investor is comparing two alternatives to limit downside risk. The first involves instructing a broker to sell the 100 shares as soon as Google's price reaches S520. Discuss buying one December put option contract with a strike price of $520. The second involves the advantages and disadvantages of the two strategies. 87. A trader buysa Furonen tions have
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