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Question 2 The current price of a non-dividend-paying stock is $40. Over the next year it is expected to rise to $42 or fall to
Question 2 The current price of a non-dividend-paying stock is $40. Over the next year it is expected to rise to $42 or fall to $37. An investor buys put options with a strike price of $41. Explain the number of shares necessary and the condition required to hedge the position?
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