Primary advantage of settling options contracts in cash

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1. What is the primary advantage of settling options contracts in cash?

2. Suppose you want to invest in a particular company. What are the pros and cons of buying the company's shares versus buying their options?

3. Suppose you want to make an investment that will be profitable if a company's stock price falls. What are the pros and cons of buying a put option on the company's stock versus short selling the stock?

Reference no: EM131316679

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