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"As an executive, you received stock options that you recently exercised. However, you cannot legally sell the stock for the next six months....

"As an executive, you received stock options that you recently exercised. However, you cannot legally sell the stock for the next six months. Currently the stock is selling for $38.25. A call to buy stock at $40 is selling for $3.38 and a put to sell the stock at $35 is selling for $1.94. How could you use a collar to reduce your risk of loss from a decline in the pric of the stock? Verify that the collar does achieve it's objective

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