10. Short Sales (LO4, CFA4) Which of the following statements about short selling is true?

a. A short position may be hedged by writing call options.

b. A short position may be hedged by purchasing put options.

c. Short-sellers may be subject to margin calls if the stock price increases.

d. Stocks that pay large dividends should be sold short before the ex-dividend date and bought afterward to take advantage of the large price declines in a short time period.