An investor is short stock at 60. The current market price of the stock is 35, and he anticipates it will continue to decline. If he thinks the price will rise temporarily and if he does not wish to close out his short position, his best strategy to prevent a loss would be to:
A) Buy an XYZ 35 call.
B) Sell an XYZ 35 call.
C) Buy an XYZ 35 put.
D) Sell an XYZ 35 put.
Answer: A) Buy an XYZ 35 call.