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.
