Question: Question 4 (Hedging a Stock Portfolio) (20 points) Consider the following information on three investors, A, B and C. Portfolio Size P Investor A ||

Question 4 (Hedging a Stock Portfolio) (20 points) Consider the following

Question 4 (Hedging a Stock Portfolio) (20 points) Consider the following information on three investors, A, B and C. Portfolio Size P Investor A || $200,000 Investor B || $300,000 Investor C || $200,000 Portfolio Beta Bp Tolerable Loss z% 2 10 % 2.5 20% 1.5 10% a) Which investors must use put options with the lowest strike price? Explain. b) Which one of the two investors, A or C, needs more put options? Explain

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