=+6" A manager controlling a broadly based portfolio of UK large shares wishes to hedge against a possible fall in the market. It is October and the portfolio stands at £30m with the FTSE 100 Index at 5020. The March futures price is 5035 (£10 per Index point). A March 5000 put option on the FTSE 100 Index can be purchased for 210 at

£10 per point.

Required a

Describe two ways in which the manager could hedge against a falling market.

Show the number of derivatives and any premiums.