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Since 1990s, LTCM bought employee stock options at discount from those who are eager to cash out. LTCM would like to hedge their systematic risk.
- Since 1990s, LTCM bought employee stock options at discount from those who are eager to cash out. LTCM would like to hedge their systematic risk. Weve got three ways to hedge:
- Short S&P 500 futures
- Buy S&P 500 put options
- Sell S&P 500 call options
So which is the best strategy and why?
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Engines That Move Markets Technology Investing From Railroads To The Internet And Beyond
Authors: Alasdair Nairn
1st Edition
0857195999, 978-0857195999
