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To hedge, a user of an energy resource wants price protection from rising prices. The user decides to buy a call option to protect against
To hedge, a user of an energy resource wants price protection from rising prices. The user decides to buy a call option to protect against rising prices.But they want a lower cost of hedging and decide to construct a collar strategy.What other action should they take along with the purchase of the call option?
a)Buy a call option
b)Sell a call option
c)Buy a put option
d)Sell a put option
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