Exam #1

Suppose you inherited 100 shares of AAPL stock and your natural position of course is long - you want higher spot prices of AAPL so you can realize capital gains. However, you were concerned about AAPL and how new phones were hardly new at all. So you want to hedge your natural long position by either buying a put option or by writing a call option, both of which are bearish bets and will pay ... ................
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