A customer 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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