Dosley Endowment Fund, which supports the activities of the Dosley Charitable Trust, is relatively new and small in terms of assets under management. The trustees of the endowment have adopted a conservative investment strategy: at the current time, all of the $800 million in assets are equally invested in an 58p500 Index. tracking fund and U.S. Treasury bonds. Right now, the annual dividend yield on the S8P. 500 Index fund is 3.8%, whereas the annual coupon rate is 5.2% for the Tbonds. As the fund manager; You expect that over the nekt three months the market will be very volatile. Given that the priority of the trustees is to preserve the value of the endowment fund, you are required to use various derivative strategies to grotect the assets under management. The current level of 58.P500 is 1,000 , and the price of U.5. T-bonds is 100. Assume that the current three-month Trbili rate is 1.4%. a. Using the derivative information listed below, determine the details of two derivative strategies that could be employed to protect the endowment's current asset value. Do not round intermediate calculations. Round your answers to the nearest whole number. hi. Apotying the putecall panity relationship, which derivative strategy showid you recommend and whiy? Do not round intermediate calcilations Round your answers to the nearest cent. Recail thet the pot and fufures prices are as follows? Alternative 1: - Select-9 S8P. 500 put options and Alternative 2: Select-o) SRP futures and Government bond futures and SRP call options and bond call options. b. Applying the put-call parity relationship, which derivative strategy should you recommend and why? Do not round intermediate calculations. Round your answers to the nearest cent. Recall that the put and futures prices are as follows: Put Price = Call Price Security Price + Present Value of Exercise Price and Income on the Underlying Security Futures Price = Underlying Security Price + (Treasury Bull income - Income on the Underlying Security) Alternative 1: Sap 500 put price: $ Bond put price: $ For the ssp soo the put optiens appear and the Government bond put options appear compared to the prices of the calis. Nrernative 2: 567500 foture price: 5 Bond future prices $ Yor the 580500 the futures are and the covernment bond futures are Is recommended because protection is gained by