Provide protection against the value of the portfolio

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Reference no: EM131176456

Suppose your portfolio mirrors S&P500 index and is valued currently at $2,000,000. The S&P 500 index is currently at 2,000. What action is needed to provide protection against the value of the portfolio falling below $1,900,000 in 6 months?

a. Buy 1,000 6-month S&P500 put options with strike price of 1800.

b. ?Buy 500 6-month S&P500 put options with strike pice of 1800.

c. Buy 1,000 6-month S&P500 put options with strike price of 1900.

d. Buy 500 6-mont S&P500 put options with stike price of 1900

Reference no: EM131176456

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