Alexa Werner is the manager of a $50 million portfolio that is currently 100% large-cap US equities benchmarked to the S&P 500. Werner is concerned about market risk in the near term and wishes to earn the risk-free rate on the portfolio over the next three months. Discussing her options with colleagues, Werner makes the following statements:

Statement #1:	Selling the appropriate amount of a three-month S&P 500 stock index futures contract would result in the portfolios market risk largely being offset.
Statement #2:	Alternatively, entering into an equity-for-fixed rate swap with quarterly payments over the next year as the fixed rate payer (equity receiver) would also offset the portfolios market risk.

Werner is most likely correct with respect to:

A) statement 1 only.

B) both statements 1 and 2.

C) statement 2 only.