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Business, 04.09.2019 05:10 paris4ever23

Acustomer is short 100 shares of dfi at 35 and the market price is 35.25. if he believes a near-term rally will occur, which of the following strategies would best hedge his position?
a) write a dfi put with an exercise price of 40. b) buy a dfi call with an exercise price of 40. c) buy a dfi call with an exercise price of 35. d) write a dfi call with an exercise price of 40.

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