Question: Please Help and explain the right answer! Ty A investor owns shares of Google. She is concerned that the stock may fall in the next

Please Help and explain the right answer! Ty A investor owns sharesPlease Help and explain the right answer! Ty

A investor owns shares of Google. She is concerned that the stock may fall in the next three months but she does not want to sell it because she wants to own it in the long term and selling it would have tax consequences. What can she do to overcome this dilemma, and if she executes your recommended hedge what is the resulting position economically equivalent to? (Hint: Long underlying Google stock + your recommended hedge = What) She needs to sell the underlying stock, one can NOT buy or sell options on stock you already own. She can buy a 3 month put on Google. Since she's long the underlying stock and she buys a put then the total resulting position is the same as owning a call on Google. She can buy a 3 month call on Google. Since she's long the underlying stock and she buys a call then the total resulting position is that she will make money on the call as the stock falls. The economic results of owning options and owning stock are different and can not be combined or compared

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