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Nick Fitzgerald holds a well-diversified portfolio of high-quality large-cap stocks. The current value of Fitzgerald's portfolio is $825,000, but he is concerned that the market

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Nick Fitzgerald holds a well-diversified portfolio of high-quality large-cap stocks. The current value of Fitzgerald's portfolio is $825,000, but he is concerned that the market is heading for a big fall (perhaps as much as 20% ) over the next three to six months. He doesn't want to sell all his stocks because he feels they all have good long-term potential and should perform nicely once stock prices have bottomed out. As a result, he's thinking about using index options to hedge his portfolio. Assume that the S\&P 500 currently stands at 2,854 . c. Determine the number of S\&P 500 puts Nick needs to purchase to hedge his portfolio

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