Methods of using stocks and options

Reference no: EM1327175

Determine two to three (2-3) methods of using stocks and options to create a risk-free hedge portfolio can be created. Support your answer with examples of these methods being used to create a risk-free hedge portfolio. Examine the manner in which option pricing is useful in corporate finance. Demonstrate the way(s) in which you would use option pricing, or, if not, the counter strategy you would use (or not use). Give a rationale for your response.

Reference no: EM1327175

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