If your customer owns 100 shares of a volatile stock and wants to limit downside risk, you may recommend:

If your customer owns 100 shares of a volatile stock and wants to limit downside risk, you may recommend:

If your customer owns 100 shares of a volatile stock and wants to limit downside risk, you may recommend:


A) shorting the same stock.

B) buying puts.

C) writing calls and selling puts.

D) buying calls.



Answer: B) buying puts.


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