How to accomplish equivalent of a short sale by using option

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Suppose Congress decides that investors should not profit when stock prices go down so it outlaws short selling.

Congress has not figured out options, however, so there are no restrictions on option trading. Explain how to accomplish the equivalent of a short sale by using options.

Reference no: EM131324403

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How to accomplish equivalent of a short sale by using option : Congress has not figured out options, however, so there are no restrictions on option trading. Explain how to accomplish the equivalent of a short sale by using options.

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