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Which of the Below Statements Is TRUE

Question 22

Multiple Choice

Which of the below statements is TRUE?


A) A put option can be used to protect against a rise in the price of the underlying instrument while maintaining the opportunity to benefit from a decline in the price of the underlying instrument.
B) Hedging with options never differ from hedging with futures.
C) Hedging with futures involves trading off the benefits of a favorable price movement for protection against an adverse price movement.
D) None of these

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