Answer:
C
Explanation:
A customer long 100 shares of XYZ buys 100 shares of XYZ
A put is an option which gives an investor the right but not the obligation to sell an underlying asset at a predetermined price within a particular period.
To reduce the risk of buying an asset, a customer can buy a put. This gives the customer the right to sell the stock at a set price.
For example, the investor can state in the put contract that we would sell the stock at $4 / unit. So, even if prices of the shares fall to $1. the investor would still sell his share for $4 / unit
