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AFP CTP Question # 126 Topic 13 Discussion

CTP Exam Topic 13 Question 126 Discussion:
Question #: 126
Topic #: 13

Which of the following would be MOST suitable for a risk-averse electronics manufacturer that uses copper in many of its components?


A.

A put option on copper futures


B.

A short position in copper futures


C.

A floor option on copper futures


D.

A costless collar using options on copper futures


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