A customer sells short 1,000 XYZ at 60. Three months later, XYZ is at 44. Which of the following strategies might the customer employ to protect his unrealized gain?
Sell 1,000 XYZ 45 stop.
Buy 1,000 XYZ 45 stop.
Buy 10 XYZ Mar 45 calls.
Buy 1,000 XYZ 45 stop limit.
A) II and III.
B) I and III.
C) I and IV.
D) II and IV.
Answer: A) II and III.