Below are several scenario that requires the use of derivatives. You will be recommending a basic strategy to these clients. Your answer should be clear and concise at to the best derivative to use. Please give a brief explanation as to why you are recommending the derivative. Please choose one of the derivative strategies below:

1. Long Call Contract (Out of the Money, At the Money, In the Money)

2. Short Call Contract (Out of the Money, At the Money, In the Money)

3. Long Put Contract (Out of the Money, At the Money, In the Money)

4. Short Put Contract (Out of the Money, At the Money, In the Money)

5. Long Futures Contract

6. Short Futures Contract

Scenario Questions:

A client who has been holding Apple Inc for over 15 years has expressed concerns about the price of the stock declining due to supplier constraints that may be coming up in the next 3 months. The client is willing to fully hedge the position and considers the stock price too high when compared to the challenges the company has in the next three months. Recommend a derivative strategy that would satisfy the clients wants and needs.

Please answer with choosing one of the 6 strategies mentioned above, the length of the contract (how many months), and how much premium so whether its in/at/out of the money.