A fund manager holds a diversified portfolio of Australian shares with a market value of $35 million and a beta of 1.3. The manager would like to decrease the portfolio beta to 0.8 for a three month period commencing now. Three month Share Price Index (SPI) futures are priced at 4000 and have a value of $25 per index point. To decrease the portfolio Beta to 0.8 for the required period would require the fund manager to: sell 350 SPI contracts sell 175 SPI contracts buy 175 SPI contracts buy 64 SPI contracts Six-month put options with strike prices of $16 and $19 cost $0.80 and $1.70, respectively. What is the maximum gain when a bear spread is created by trading a total of 200 options? $110 $210 $420 $300