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Please explain why (b) Say you were short Google stock in your portfolio but wanted to limit your losses to 25% of the amount your
Please explain why
(b) Say you were short Google stock in your portfolio but wanted to limit your losses to 25% of the amount your shorted. What option trade should you make (circle one of buy or sell, and one of put or call)? Buy / Sell Google put / call options. (c) Say you worked at Company A and found that Company B has stock returns most strongly correlated with Company A's of all publicly traded firms. If you wanted to hedge the risk of being fired from Company A because the company peforms poorly, what option trade should you make in Company B's options? Buy / Sell Company B put /call optionsStep by Step Solution
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