Which of the following is an example of a protective put strategy? A. You own 200 shares of Apple and buy 2 calls. B. You don't own any shares of Tesla and buy 2 puts with different strike prices. C. You own 500 shares of Netflix and buy 5 puts. D. You own 300 shares of IBM and sell 3 puts on the stock.

. Liberty Fuel has an inventory of 1,092,000 gallons of heating oil. The futures contracts on heating oil are based on 42,000 gallons. If the firm wishes to fully hedge its inventory, it should take which one of the following positions in heating oil futures contracts? A. short on 26 B. long on 26 C. long on 25 D. short on 24