(Solution) - An investor sells a stock short in July and its -(2025 Original AI-Free Solution)

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An investor sells a stock short in July and its price declines in November?the position has generated a profit. However, the individual does not want to close the position and realize the profit during this tax year. Instead, the investor wants to maintain the position until January so the gain will be taxed next year. How can the hedge ratio be used to reduce the risk associated with the price of the stock rising while still transferring the gain to the next tax year?