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 -0.60.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