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You have 5,000 shares of Amazon (AMZ) currently valued at $1,928.42 but your omniscient Bubbie Tzeitl (grandma) just had a dream that an Amazon delivery
You have 5,000 shares of Amazon (AMZ) currently valued at $1,928.42 but your omniscient Bubbie Tzeitl (grandma) just had a dream that an Amazon delivery drone will into a flock of Bald Eagles causing a huge national backlash against the company. If you believe in her dark and horrible dream.
a. Describe how you could protect against a short-term decline in the stock price using a:
i. Call option
ii. Put option
iii. futures contract
b. Which method would you recommend? Why?
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