A fund manager wishes to insure the minimum value of their stock portfolio against a fall in the value of the ASX 200 market index, but retain the potential for a gain should the market index rise.

Which one the following option positions is best suited for their hedging needs?

Select one:

a. Buy put options on the ASX 200 index.

b. Buy futures contracts on the ASX 200 index.

c. Sell futures contracts on the ASX 200 index.

d. Sell put options on the ASX 200 index.