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You buy 1 0 0 shares of XYZ stock at $ 6 5 / share and one XYZ 6 5 put @ $ 2 to
You buy shares of XYZ stock at $share and one XYZ put @ $ to hedge the position. While you still believe that it is a good longterm investment with upside potential, you are also concerned about a nearterm weakness in the overall market that could lead to a loss on this portfolio. What is your maximum loss?
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