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    Financial Markets and Institutions
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    Exam 29: The Applications of Futures and Options Contracts
  5. Question
    Market Participants Can Obtain Downside Protection Using Options at a Cost
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Market Participants Can Obtain Downside Protection Using Options at a Cost

Question 47

Question 47

True/False

Market participants can obtain downside protection using options at a cost equal to the option price, but preserve upside potential (reduced by the option price).

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