A portfolio manager holds a portfolio that mimics the S&P/ASX 200 (currently trading at 7350). With access to 7300 XJO puts and 7400 XJO calls, the manager takes positions in options to hedge against anticipated downside risk.

a) Describe the manager's hedge: what position is taken, and which option is used?

b) The manager complains that the hedge is too costly and they want to offset the cost by going short in the put. Does this offset costs, and is this a good idea? Explain.