Using Derivatives for Risk Management

Derivatives are financial instruments that derive their value from an underlying asset. They have various uses in financial markets, including hedging, speculation, and arbitrage. In this context, one common use of derivatives is to manage risk in investment portfolios.

Consider the following scenario: An investor holds a significant amount of stock in a technology company and is concerned about potential declines in the stock price due to market volatility. To mitigate this risk, the investor may consider using derivatives.

Which of the following derivatives would most appropriately help the investor protect against a decline in the stock price?