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  3. you hold many stocks in oil producing companies. y

You hold many stocks in oil producing companies. You are afraid that the oil price...

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Finance

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You hold many stocks in oil producing companies. You are afraid that the oil price will get lower and the price of the oil companies stocks will collapse. You know that when the price of oil collapses, shipping companies make huge profits (since oil is stored in their cargos, waiting for the price to increase). Under these assumptions, discuss three strategies available to you to temper your risk (i.e. to reduce your exposure to a decrease in the oil price)

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