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PLEASE SHOW ALL WORK We buy common shares for $20 a share. In order to protect our position, we may invest in options. We may
PLEASE SHOW ALL WORK
We buy common shares for $20 a share. In order to protect our position, we may invest in options. We may buy (or sell) put options at $1 premium for an exercise price of $22 with an expiration of six months. We also may invest in call options, which cost 1.5 with the same expiration date. What is prudent to do, in case we predict the stock market will crash.
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