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Executives Are Often Very Heavily Invested in Their Own Stock

Question 11

Multiple Choice

Executives are often very heavily invested in their own stock. To mitigate the effects of this concentration, which of the following actions could they take?


A) Enter into an equity swap to pay the returns on their own stock in exchange for receiving Libor.
B) Enter into an equity swap to pay the returns on their own stock in exchange for receiving the returns on a broad equity index.
C) Buy collars on the stock.
D) All of the above.

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