Put options are more typically used to hedge when portfolio managers are mainly concerned about a temporary decline in a stock's value.

Name: Put options are more typically used to hedge when portfolio managers are mainly concerned about a temporary decline in a stock's value.
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Question

Put options are more typically used to hedge when portfolio managers are mainly concerned about a temporary decline in a stock's value. ​

Quizplus · Accepted Answer

Put options give the holder the right to sell a stock at a predetermined price, offering a way to protect against declines in stock value, making them suitable for hedging against temporary drops.

Put Options Are More Typically Used to Hedge When Portfolio