Roger Hickstead owns 100 shares of Cole Corporation stock with a current market value of $45 per share. Consensus stock price estimates from the leading industry analysts predict the price of Cole will fall to $35 per share in the next five months. What type of derivative strategy should Hiekstead employ if he is not willing to lose more than $10()
A. Buy a put with a strike price of $37 and a premium of $2.
B. Buy a covered call with a strike price of $37 and a premium of $2.
C. Buy an uncovered call with a strike price of $37 and a premium of $2.
参考答案：A
解析：
As the stock price drops, increases in the put option value would offset the losses on the stock. If the stock price falls to $37 or below, the stock can be sold at a loss of $37- $45 = - $8. Since Hickstead bought the put for $2, the total loss is - $10 (the max he is willing to lose).