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Information on your stock portfolio is given as: Current portfolio value $2,000,000 Portfolio market beta 1.0 Current S&P 500 index 2,500 What action is needed

Information on your stock portfolio is given as:

Current portfolio value $2,000,000 Portfolio market beta 1.0 Current S&P 500 index 2,500 What action is needed today to insure against your portfolio value dropping below $1,800,000 in 2 years?

A. Buy 400 2-yr S&P500 put options with strike price of 2,000.

B. Buy 800 2-yr S&P500 put options with strike price of 2,250.

C. Buy 800 2-yr S&P500 put options with strike price of 2,000.

D. Buy 400 2-yr S&P500 put options with strike price of 2,250.

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