Due to an escalating trade war, the portfolio manager of an equity mutual fund anticipates a negative impact on his fund's assets. To protect his investment portfolio, the fund manager would:

Due to an escalating trade war, the portfolio manager of an equity mutual fund anticipates a negative impact on his fund's assets. To protect his investment portfolio, the fund manager would:


A) buy S&P 500 index calls.

B) sell S&P 500 index calls.

C) sell S&P 500 index puts.

D) buy S&P 500 index puts.



Answer: D) buy S&P 500 index puts.


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