Describe the types of options you would buy or sell

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Suppose a customer asked you to manage their large share portfolio,and you would like to buy and/or sell options on many of the shares they own.

Describe the types of options you would buy or sell, as well as your rationale, given the following circumstances:

They own 10 000 BIT shares. You believe these shares are going to fall in price, but they won't let you sell it because the late founder told them never to let it go.

How do you protect the customer from the impending a price decline? Further to this, Your analysis suggests that the ordinary shares of another company is poised to increase in value sharply over the next year but your customer doesn't want to buy any of the shares, but they want you to use options to profit if the price rises. What do you do?

Reference no: EM132403082

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