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On May 8, 2013, an investor owns 100 Google shares. The share price is about $ 871 and a December put option with a strike price of $ 820 costs $ 37.50.The first involves buying one December put option contract with a strike price of $ 820. The second involves instructing a broker to sell the 100 shares as soon as Google's price reaches $ 820. Discuss the advantages and disadvantages of the two strategies.

Financial Management, Finance

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