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An investor holds shares in LG Company. Currently, the price per share is $120 but the investor is concerned about a sharp decrease in share

  1. An investor holds shares in LG Company. Currently, the price per share is $120 but the investor is concerned about a sharp decrease in share price in near future. Hence, the investor would like to buy options to hedge against the potential decrease in prices. Would you recommend the investor to buy call or put options? Shall they be American or European Options and why?

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