1.Suppose that you own 8000 shares worth $20 each. Premium is $4. How can put options be used to provide you with insurance against a decline in the value of your holding over the next 4 months. a)...

1.Suppose that you own 8000 shares worth $20 each.  Premium is $4. How can put options be used to provide you with insurance against a decline in the value of your holding over the next 4 months.

a)
What would you do? Buy/sell call/ put options?

b)
How many would you buy/sell call/put options?

c)
Describe your strategy? How are you making money?