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Describe an option strategy (using the put or call above) that allows you to hedge the downside risk, i.e. a strategy that limits the possible
Describe an option strategy (using the put or call above) that allows you to "hedge the downside risk", i.e. a strategy that limits the possible losses from investing into the stock. Provide a P&L diagram and numerical examples to show the advantages and disadvantages of the strategy. (10 marks)
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