You Own 7,500 Shares of GO Stock Which Is Currently

Multiple Choice

You own 7,500 shares of GO stock which is currently valued at $47 a share.The $50 put has a premium of $2.50 and a put delta of -.60.What position should you take in $50 put contracts to hedge your stock against a $1 decrease in price?

A) buy 125 contracts
B) buy 1,250 contracts
C) buy 12,500 contracts
D) write 125 contracts
E) write 1,250 contracts