While stock index options can be used to play the market as a whole, they are also effective in protecting equity portfolios against falling markets.

Name: While stock index options can be used to play the market as a whole, they are also effective in protecting equity portfolios against falling markets.
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Question

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Stock index options can be used as a hedging tool to protect equity portfolios against potential losses in a declining market by providing the option to sell at predetermined prices.

While Stock Index Options Can Be Used to Play the Market