[zyywzh]

Hi John,

Your answers to my questions (including the other two questions I posted to you) are really helpful! Thanks!

[zyywzh]

Thanks!

Therefore, can we say that a long put option (to buy a put option) would be a better strategy for the shareholder in response to the price fall?

If price falls under the exercise price, the buyer of the put option will exercise the put option. The shareholder could therefore fix his minimum share price above the exercise price.

If price does not fall under the exercise price, the shareholder will not exercise the put option. But his loss will be limited within a small range.

Thanks in advance!

[zyywzh]

I am doing P4 currently. Email: zyywzh@gmail.com
Cheers

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