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Amazon Hedge Fund has a substantial position in CSL shares. The share price has been volatile over the past 6 months, and a group of
Amazon Hedge Fund has a substantial position in CSL shares. The share price has been volatile over the past 6 months, and a group of analysts working in the fund believe that the price may drop substantially over the next 4 months before recovering. Suggest two risk minimization strategies that Amazon Hedge Fund can adopt. In your answer explain the derivative product that would be used, the position taken, and the cash flows at maturity.
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