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The investment team can also purchase put options. What are the potential benefits of this?

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The investment team can also purchase put options. What are the potential benefits of this?

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A. Recall, as discussed above, a put option gives the purchaser the right to sell a security to the writer at a pre-determined price. Put options rise in value as the underlying stocks or indices decline in value. By selling a put option, the team seeks to offset some of the risk of a potential decline in a portfolio holding.

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