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Question 9 Suppose you do not own a share. How would you use options to insure against a fall in the value of a share?

Question 9

Suppose you do not own a share. How would you use options to insure against a fall in the value of a share?

(a)Buy a call and lend at the risk-free

(b)Buy a share and a put

(c)Buy a put and a call

(d)Buy a call and borrow at risk-free

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