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You own a stock portfolio worth 50,000 dollars. You are worried that the stock prices may take a dip before you are ready to sell
You own a stock portfolio worth 50,000 dollars. You are worried that the stock prices may take a dip before you are ready to sell so you are considering purchasing either at the money or out of the money puts. If you decide to purchase the out of the money puts your maximum loss is_____than if you buy at the money puts and your maximum gain is______.
A. greater; lower
B. greater; greater
C. lower; greater
D. lower; lower
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