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I remember this question from Shwesser and answer is 1 according to them, although it's wierd strategy fund manager uses.

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In fact I remember the answer being A. I can't imagine if Schweser got it wrong. Omaojo, where did you see answer being C?

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It's definitely A.
First, hedge fund managers don't notify their clients of trades. In fact, in many hedge funds clients can't find out about fund positions.
Second, selling puts is a perfectly reasonable way of being bullish on a stock. As long as shorting puts is part of the disclosed investment strategy of the fund, there is nothing weird about this at all (the reason for shorting puts is that you can almost always be assured that realized vol will be less than implied vol so in some sense it's nutty not to short puts).

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