John will inherit the wealth of his grandfather in 6 months. John would like to invest the wealth into a portfolio that is similar to the S&P 500. However, he is concerned that the stock market may rise over the next 6 months. What can he do to reduce the exposure?

Select one:

a.

Sell index futures or buy index call options.

b.

None of the given choices can reduce the exposure.

c.

Buy index futures or buy index call options.

d.

Buy index futures or buy index put options.

e.

Sell index futures or buy index put options.