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Maintain the possible gain from lower prices

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Reference no: EM131222367

Suppose you are interested in taking a safari to Kenta, Africa, next summer but are worried about the price of the trip, which has ranged from $2,500 to $3,500 over the past five years. The current price is $3,000. Suppose you wanted to maintain the possibility of a lower price.

1. How could you eliminate the risk of rising prices but still maintain the possible gain from lower prices?

2. How might you pay for this option?

Reference no: EM131222367

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