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A client owns a basket of stocks that closely tracks the S&P 500 Stock index. Explain how he can use S&P Futures to reduce the
- A client owns a basket of stocks that closely tracks the S&P 500 Stock index.
- Explain how he can use S&P Futures to reduce the risk of losing money.
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- Explain how he can use a Put option on the S&P 500 Index to reduce the risk of losing money
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- Explain how he can use an equity collar to reduce the risk of losing money
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- Compare and contrast these three hedging strategies by explaining the advantages and disadvantages of each relative to one another.
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