Your customer owns 500 common shares of Seabird Airlines (ticker: SBRD). He purchased the shares three years ago at $45 a share. Seabird is currently trading at $92 a share. The customer is concerned that a recent drop in airline travel will negatively impact the price of the stock. However, he does not want to sell the shares as he believes the company's long-term prospects are good. What would you recommend to the customer?

A) Buy 5 SBRD 90 calls 

B) Sell 5 SBRD 95 puts 

C) Buy 5 SBRD 90 puts 

D) Sell 5 SBRD 95 calls

Answer rating: 100% (QA)

Answers The correct option is C Buy 5 SBRD 90 puts Reason Since the customer already owns 500 common ... View the full answer