Chapter 05 · Section 5.1

A hedger can protect a long spot position...

A hedger can protect a long spot position by establishing a fixed hedge with:

a) A long call options position.
No. The intention of a hedger using a fixed hedge is to exercise the option, if prices move against him. A hedger in a long position is interested in a right to sell his asset at a predetermined price, if prices decrease.
b) A long put options position.