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Consider an investor who owns stock XYZ. The stock is currently trading at $120. The investor worries that the outlooks for the market and the

Consider an investor who owns stock XYZ. The stock is currently trading at $120. The investor worries that the outlooks for the market and the stock are not favorable. The investor decides to protect his potential losses by using derivatives. Which one is a correct course of action given the investors concerns?

A: Sell the stock and lock in the price

B: Purchase a put option

C: Sell a call option

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