You hold Costo shares. You fear a drop in their price and therefore want to protect...
You hold Costo shares. You fear a drop in their price and therefore want to protect your portfolio. How to do?
Homework Answers
For the time period when drop is feared, buy Costco puts if available in the market and if they are not available buy S&P puts. THis would give insurance for loss in portfolio as put price will increase when Costco shares fall.
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