29. The foundation 's grant-making and investment policy issues have been finalized

. Receipt of the expected $45 million Franklin cash gift will not occur lor 90 days , yet the committee believes current stock and bond prices are unusually attractive and wishes to take advantage of this perceived opportunity.

a. Briefly describe two strategies that utilize derivative financial instruments and could be implemented to take advantage of the committee's market expectations.

b. Evaluate whether it is appropriate for the foundation to undertake a derivatives-

based hedge to bridg-e the expected 90-day time gap, considering both positive and negative factors.