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uy 9. What naked strategy or strategies would an investor pursue if she thought a stock's price was going to rise? 10. What is the general conclusion of empirical studics that investigated whether a supe- rior option strategy exists? 11. Comment on the following statement: "Investors should pay closer attention to the options markets because option strategies offer risk and reward opportunities that are clearly superior to investing directly in common stock." 12. Suppose an investor wants to follow a protective put buying strategy for a stock he owns that has a market price of $60. He is told that three 180-day put options are avail- able on that stock with strike prices of $56, $58, and $60. 2 Which put option will give him the greatest price protection? b. Which put option will be the most expensive? C. Which put option should be selected? 13. You are meeting with a pension plan sponsor who asked your advice on several invest- ment policy guidelines formulated for its asset managers. One of the guidelines involves the use of options for hedging: Protective put buying and covered-call writing strategies are recognized by the investment com- munity as means for hedging a stock position. The former will not be permitted by any of our fund managers because it involves a cost that may not be recouped if the put option is not excr- hecause there is no cost generated to protect the