Paragraph Styles 1.) What does hedging mean? Assume you have a 6 million O dollar well diversified portfolio. The La Salle Comprehensive Stock Index (LCSI) stands at 1500. Options on the Index sell at multiples of 100 (each contract is worth $150,000). The at-the-money (the exercise price equals the Index value) three month Call option is currently priced at 12 (meaning $1200) and the at-the-money three month Put option is currently priced at 9 ($900). Because of events pertaining to the President's trade policies, you are afraid that stocks may o BI fall in the near term (the next three months). You do not wish to liquidate your portfolio. Employ a Call or a Put option strategy to hedge your position. Defend your strategy. Now assume that over the next three months, both the market and your portfolio decrease by one percent. ANALYZE what happened to your overall position. Looking back, was there a better hedging strategy? Did you make the correct decision