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Suppose that you own 8000 shares worth $20 each. Premium is $4. How can put options be used to provide you with insurance against a

Suppose that you own 8000 shares worth $20 each. Premium is $4. How can put options be used to provide you with insurance against a decline in the value of your holding over the next 4 months (4 points)

a) What would you do? Buy/sell call/ put options?

b) How many would you buy/sell call/put options?

c) Describe your strategy? How are you making money?

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