1. A client owns a basket of stocks that closely tracks the S&P 500 Stock index.
   1. Explain how he can use S&P Futures to reduce the risk of losing money.
2. 2. Explain how he can use a Put option on the S&P 500 Index to reduce the risk of losing money
3. 3. Explain how he can use an equity collar to reduce the risk of losing money
4. 4. Compare and contrast these three hedging strategies by explaining the advantages and disadvantages of each relative to one another.