How can options be used to hedge risk?

Related questions

1. What does a negative risk premium mean?
2. What is implied premium?
3. What is risk premium formula?
4. How do you calculate equity risk?
5. Is equity risk premium same as market risk premium?
6. How do you hedge equity risk?
7. What is the current equity risk premium?
8. Can hedging eliminate all risk?
9. What happens when market risk premium increases?
10. Where do you find equity risk premium?

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