You hold short positions of a stock and believe the price of the stock is going to
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Question:
You hold short positions of a stock and believe the price of the stock is going to decline within the next three months. However, you realize the stock price could increase and want to hedge that risk. Which one of the following option positions should you take to create the desired hedge?
A) Buy a call B) Sell a call C) Buy a put D) Sell a put E) No option position will create the desired hedge
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