Dennis Austin works for OReilly Capital Management and manages endowments and trusts for large clients. The fund invests most of its portfolio in S&P 500 stocks, keeping some cash to facilitate purchases and withdrawals. The funds performance has been quite volatile, losing over 20 percent last year but reporting gains ranging from 5 percent to 35 percent over the previous five years. OReillys clients have many needs, goals, and objectives, and Austin is called upon to design investment strategies for their clients. Austin is convinced that the best way to deliver performance is to, whenever possible, combine the funds stock portfolio with option positions on equity. Given the following scenario:

Performance to Date: Up 3%

Client Objective: Stay positive

Austin's scenario: High stock price volatility between now and end of year.

Which is the best option strategy to meet the client's objective?

A)Bull call.

B)Protective put.

C)Long butterfly.

D)2:1 Ratio Spread.