Frank Jameson is a portfolio manager with 90 percent of the large-cap diversified mutual fund he controls invested in common stocks. Jameson is concerned the overall market will decline by a significant amount over the next two months due to a slowing of the general economy. Which of the following actions will provide a hedge for the mutual fund()
A. Purchasing call options on the S&P 500.
B. Writing put options on the S&P 500.
C. Purchasing put options on the Standard and Poor’s 500 Index (S&P 500).
