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Tim bought 100 shares of Metro Corp stock at $60/share. The stock has appreciated to $80/share in the past eight months. He is confident that
Tim bought 100 shares of Metro Corp stock at $60/share. The stock has appreciated to $80/share in the past eight months. He is confident that the stock is a good long-term investment with additional upside potential but is concerned about a near-term weakness in the overall market that could wipe out his unrealized gains. Which of the following strategies would probably be the best recommendation for Tim? (16.7%) A. Buy puts on the stock B. Sell calls on the stock C. Buy calls on the stock D. Sell puts on the stock E. None of the above
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