Fred bought 600 shares of Edgewood shares at a price of $19. The shares are currently selling for $53 a share. To protect his profits, Fred should buy

Question

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Fred should buy 6 put options with a strike price of $50 to protect his profits. This is because if the stock price falls below $50, the put options will increase in value, offsetting the losses on his shares.

Fred Bought 600 Shares of Edgewood Shares at a Price