You hold 20,000 shares in ABC plc which are currently

You hold 20,000 shares in ABC plc which are currently priced at 500p. ABC has developed a revolutionary flying machine. If trials prove successful the share price will rise significantly. If the government bans the use of the machine, following a trial failure, the share price will collapse.
Required
Explain and illustrate how you could use the traded options market to hedge your position.
Further information
Current time: 30 January.
Traded option quotes on ABC plc on 30 January:
You hold 20,000 shares in ABC plc which are currently

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