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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
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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 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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