1. You have a portfolio presently worth (marked to market at) $250 million. You are worried however that the fund is might lose 5% of its value suddenly. You think youve found a derivative instrument that, for $1 million dollars going long (buying), could fully hedge this loss. What must be the delta ratio of this product?

1. A delta of -5
2. A delta of +5
3. A delta of -12.5
4. A delta of +12.5
5. A delta of 0