Individuals and corporations who invested their money in the Universa hedge fund, which is run by pioneer investor Mark Spitznagel, did not experience any losses when the stock market crashed as a result of the spread of COVID_19. In an interview with Bloomberg television, Spitznagel attributed his funds success to the frequent purchase of put options. Required

A. Spirznagel states that his investors who are highly risk averse do not agree with the details of his economic forecasts or his economic ideology. However, they still allow him to use their funds to purchase put options. Explain this statement

B. Despite offering significant protection to portfolio investments, many investors are reluctant to purchase put options. Critically discuss this statement.

C. Many investors believe that buying bonds with high convexity is an effective strategy to make high returns when central banks are expected to lower interest rates. Explain the reasoning behind this investment approach.