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The following strategies were discussed in the lecture on options strategies. Given the following scenarios,...

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Finance

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The following strategies were discussed in the lecture on options strategies. Given the following scenarios, indicate which strategy you would use and why. Strategies Protective Put Covered Call Spread Straddle Collar 4. You hold stock in Old Money Inc. As part of the founding family of the firm, you don't want to sell your shares because your family would lose their control of the firm. However, you don't think that your cousin, Biff, is doing a good job of running the company and you are afraid that the stock price will fall as a result of his incompetence. What option strategy could you use to protect yourself from the loss in value? (3 points)

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