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Suppose that the Russell 2000 index is similar to an investment fund managers stock portfolio and that the manager decides he needs to protect the

Suppose that the Russell 2000 index is similar to an investment fund manager’s stock portfolio and that the manager decides he needs to protect the portfolio against any loss exceeding 10 percent. If the prevailing level of the index is 1,500, what would be the exercise price with which the manager should purchase put options?

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