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The Current Price of Platinum Is $1,800 Per Ounce

Question 18

Multiple Choice

The current price of platinum is $1,800 per ounce.You are expecting that in three months the price of platinum will rise above $1,900.You are also worried that there is a small chance platinum's price may fall below $1,700.If you are setting up speculative strategies based on your views,you are unlikely to use which of the following strategies?


A) Buy platinum in the spot market,and place a stop-loss order at $1,700 or a little below.
B) Buy call options on platinum.
C) Buy call options on platinum futures.
D) Buy platinum in the spot market and protect against the downside by buying put options or put options on platinum futures.
E) Buy platinum futures.

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