Pedro dislikes seabird coffee and thinks the company's stock is overvalued. He is currently short 1,000 shares of the company. He is concerned with the potentially unlimited risk he is exposed to and would like to use options to hedge that risk. His best option position would:
A) buy 10 Seabird Coffee calls.
B) buy 10 OEX (S&P 100 index) calls.
C) sell 10 Seabird Coffee calls.
D) buy 10 Seabird Coffee puts.
His best option position would be (A) buy 10 Seabird Coffee calls.
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