If a financial institution expects that the equity markets will decline because of economic conditions, it could best hedge its position by ____ futures contracts on ____.

a. purchasing; Treasury bonds

b. purchasing; the S&P 500 Index

c. purchasing; a Municipal Bond Index

d. selling; a Municipal Bond Index

e. selling; the S&P 500 Index

f. selling; Treasury bonds

g. none of the above would mitigate the risk of an equity market decline