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Mini option investors have strong risk-seeking preferences while standard option traders have a fairly conservative risk-taking attitude. (Note: In financial market, five types of risks
Mini option investors have strong risk-seeking preferences while standard option traders have a fairly conservative risk-taking attitude.
(Note: In financial market, five types of risks are generally encountered by market participants, including market risk, opportunity risk, inflationary risk, credit risk and liquidity risk)
Required: How can investors hedge financial risks using mini options and standard options.
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