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Answer the following questions about derivatives and margin lending: a) What is the difference between a long and a short position? b) Why would an

Answer the following questions about derivatives and margin lending:

a) What is the difference between a long and a short position?

b) Why would an investor consider short selling strategies?

c) Outline, using examples, the difference between a put option and a call option.

d) What benefits for portfolio building and allocation does leverage provide?

e) What does in-the-money mean with regards to options?

(Only short responses required)

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