Question: (a) While covered calls and protective puts are used to manage risks, there is misconception about the use of these two. For example, some considers

(a) While covered calls and protective puts are used to manage

(a) While covered calls and protective puts are used to manage risks, there is misconception about the use of these two. For example, some considers that covered calls offer a guaranteed return. Explain with examples the suitability of covered calls and protective puts in managing equity risks. Show calculations and graphs

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