You have a client who has sold short 100 shares of RIF, a stock listed on the NYSE. If the client wished to use options to protect against unlimited loss, you would suggest the client:

You have a client who has sold short 100 shares of RIF, a stock listed on the NYSE. If the client wished to use options to protect against unlimited loss, you would suggest the client:

You have a client who has sold short 100 shares of RIF, a stock listed on the NYSE. If the client wished to use options to protect against unlimited loss, you would suggest the client:


A) buy 1 RIF put.

B) sell 1 RIF call.

C) sell 1 RIF put.

D) buy 1 RIF call.



Answer: D) buy 1 RIF call.


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