a. Our firm took a hit because we wrote put options just before the stock market crash.

Question:

a. "Our firm took a hit because we wrote put options just before the stock market crash."
b. "Before hedging our stock with options on index futures, we search for the index that is most appropriate."
c. "We prefer to use covered call writing to hedge our stock portfolios."
Interpret the above statements made by Wall Street analysts and managers.
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...