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You own shares of a stock. You believe the stock price will increase in the future. However, you realize the stock price could decline and

You own shares of a stock. You believe the stock price will increase in the future. However, you realize the stock price could decline and want to hedge that risk. Which one of the following option positions should you take to create the desired hedge?

Multiple Choice

  • Sell a put.
  • Sell a call.
  • None of these.
  • Buy a call.
  • Buy a put.

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