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Question#1 (b) The REIT firm is considering investing in European inflation call options. The inflation options can be treated as exactly the same as options

Question#1 (b)

The REIT firm is considering investing in European inflation call options. The inflation options can be treated as exactly the same as options on non-dividends paying stocks. Discuss how option trading strategies can be used for speculation or risk management purposes. Also discuss any risks involved in any strategies or methods that you propose.

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