Question
An investor looking to protect himself from the downside
risk should use which of the following derivatives?Solution
  Buying a stock and put option on that will give protection against the downside   risk. If the price of the stock falls to even zero then the put option can be exercised and amount equivalent to exercise price can be recovered (against the payment of premium). If the price of the stock rises then put will simply expire worthless (against a payment of premium).
In each question below, a sentence is given with a part of it printed in bold type. Find out which phrase should replace the phrase given in bold to co...
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In the following question, a sentence is given with a phrase highlighted in bold. Select the option given below that can replace the phrase in bold to ...
In the following questions, sentences are given with a part in bold. The given phrase in bold may or may not contain an error. If phrase has error, one...
