Why would an investor want to use options to hedge

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Question 1. Why would an investor want to use options to hedge a portfolio of common stocks? If the Investor thinks the market is in for a fall, why not just sell the stock?

Question 2. In your opinion, what are the most important features of commodities and financial futures, and why these should be considered by portfolio managers in portfolio construction and management? Explain.

Reference no: EM133299700

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