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True or False 1-An investor holding a particular stock faces risk of reduction in the value of stockholding due to decline in price of stock,

True or False

1-An investor holding a particular stock faces risk of reduction in the value of stockholding due to decline in price of stock, which is effectively hedged with writing a put option

2-In an option trading contract , profit accrues to call writer when call lapses unexercised.

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