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).
参考答案：C
解析：
A put option guarantees the buyer can sell the asset to the writer at the exercise price, on or before its expiration. Puts allow traders to earn a positive return when the underlying asset decreases in value. A diversified mutual fund can trade in S&P500 Index options, thereby closely matching the large-cap diversified portfolio. If the market declines, some or all of the losses on the portfolio will be offset by gains on the index put options.