A columnist on marketwatch.com offers the following advice: If I were to hedge Apple, Id use

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A columnist on marketwatch.com offers the following advice: “If I were to hedge Apple, I’d use … 90-day puts as I’ve done at times in the past.”
a. What does the columnist mean by “hedge Apple”?
b. Briefly explain how you would use put contracts to hedge Apple.

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Money, Banking, and the Financial System

ISBN: 978-0134524061

3rd edition

Authors: R. Glenn Hubbard, Anthony Patrick O'Brien

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