Andres Fornicelli owns Biosciences Unlimited stock. He is concerned that the results from their new drug trials next week for their cancer treatment may require some additional testing. He still has confidence but is very worried about the stock price. What can he do to hedge a very bad report?
A) Buy a call option to buy the stock when the bad news hits the stock price.
B) Buy a call option to sell the stock at today's price for the next two weeks.
C) Buy a put option to buy the stock when the bad news hits the stock price.
D) Buy a put option to sell the stock at today's price for the next two weeks.
Correct Answer:
Verified
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