You Own 1,800 Shares of Textile Stock, Which Is Currently

Multiple Choice

You own 1,800 shares of Textile stock, which is currently, valued at $62 a share. The $65 put has a premium of $4.26 and a put delta of −.60. What position should you take in $65 put contracts to hedge your stock against a $1 decrease in price?

A) buy 3 contracts
B) buy 30 contracts
C) buy 300 contracts
D) write 3 contracts
E) write 30 contracts