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Please note B is incorrect let me know if you can find out which is the truly correct awnser An investor with a high value
Please note B is incorrect let me know if you can find out which is the truly correct awnser
An investor with a high value holding of shares of ABC currently Priced at 100p protects the value of the holding from falling prices by selling (equity collars) Calls with X=110p and buying Puts with X=90p. Which one of the following is correct? A. Long Calls provide a floor and the short Puts cap the value. B. Long Calls cap the value and the short Puts provide a floor. C. Short Calls provide a floor and the long Puts cap the value. D. Short Calls cap the value and the long Puts provide a floorStep by Step Solution
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