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Suppose a trader is long on an underlying stock. Which of the following would be the best hedging strategy against the long stock position? a.

Suppose a trader is long on an underlying stock. Which of the following would be the best hedging strategy against the long stock position? a. Short a call on the underlying stock option. b. Long a put on the underlying stock option. c. Short a put on the underlying stock option. d. Long a call on the underlying stock option.

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