Question
An investor owns 1,000 IBM shares currently worth $125 per share. She concerned that it may fall in the near term but she doesn't want
An investor owns 1,000 IBM shares currently worth $125 per share. She concerned that it may fall in the near term but she doesn't want to sell her stock for tax reasons. What can the investor do to protect against the price falling?
| A. | Buy a call on the stock struck at $125
| |
| B. | Sell a put on the stock struck at $115
| |
| C. | Buy a put on the stock struck at $115
| |
| D. | None of the above |
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International Business Finance
Authors: Michael Connolly
1st Edition
0415701538, 9780415701532
