To protect their portfolio of shares from a possible share price fall,an investor could buy a:

Question

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The best choice to protect a portfolio of shares from a possible share price fall is to buy a put option. This gives the right but not the obligation to sell the shares at a predetermined price (strike price) within a set time frame. If the share price does fall, the put option will increase in value, providing a hedge against losses on the shares in the portfolio.

To Protect Their Portfolio of Shares from a Possible Share