The current price of a non - dividend - paying stock is $30. Over the next six months it is expected to rise to $36 or fall to $26. Assume the risk - free rate is zero. An investor sells call options with a strike price of $32. Which of the following hedges the position? A. Buy 0.6 shares for each call option sold B. Buy 0.4 shares for each call option sold C. Short 0.6 shares for each call option sold D. Short 0.4 shares for each call option sold.
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