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Suppose that Sammy is very pessimistic about the market. He thinks there will be a major dip in the next two weeks. He creates a
Suppose that Sammy is very pessimistic about the market. He thinks there will be a major dip in the next two weeks. He creates a portfolio where he shorts all the chip companies, AMD, Intel, NVIDIA etc. He takes short positions in a number of technology companies that rely on chips.\ \ He is worried that he could be wrong and he wants to limit his potential losses. Which of the following would be the best hedge for Sammy?
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