You are a fund manager of a superannuation fund which has a significant holding of BHP shares traded on the ASX. You are concerned that there is a strong chance of a significant market correction in the next six months. (a) Explain how you can use futures as part of a risk management strategy in order to hedge against the risk of a market downturn? (4 marks) (b) As an alternative to using futures, you may also use options to protect the value of your investment. Describe a put option and how you can use a put option in order to hedge against the risk of a market downturn. Discuss the advantage(s) and disadvantage(s) of using an option contract over forward and futures contracts in managing risk exposures. (4 marks)