Why using options is an effective way to reduce overall risk


Discussion: "Options Markets"

Respond to the following:

i) Justify why using options is an effective way to reduce the overall risk in a portfolio. Provide an example for your justification.

ii) Determine whether you would or would not invest in the options market. Support your decision with two reasons.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Risk Management: Why using options is an effective way to reduce overall risk
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