Your client is worried about a short-term sell off rather


Your client is worried about a short-term sell off. Rather than selling the entire portfolio and paying the tax consequences you recommend hedging. All of the following strategies are designed to limit downside loss in the event of a market sell-off except for:

use an index collar strategy to hedge the portfolio

write put option contracts to hedge the portfolio

sell short an index that is close in construction to the client’s portfolio holdings

buy put options to hedge the portfolio

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Financial Management: Your client is worried about a short-term sell off rather
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