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Protective put and covered call are two important hedge strategies for a stock portfolio manager. Which of these hedging strategies is better at limiting downside

  1. Protective put and covered call are two important hedge strategies for a stock portfolio manager. Which of these hedging strategies is better at limiting downside risk if a significant decline in value of stocks is expected?

    Protective put

    Covered call

    Synthetic call portfolio

    A 50-50 position in each of the strategies

    None of the above has the capacity to limit losses

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