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    Exam 16: The Market for Stock Index Products and Other Equity Derivatives
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    With Stock Index Options, the Hedger
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With Stock Index Options, the Hedger

Question 10

Question 10

Multiple Choice

With stock index options, the hedger:


A) Has downside risk protection.
B) Locks in a price.
C) Retains the upside potential, which is reduced by the option.
D) a and c only.
E) All of the above.

Correct Answer:

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