Evaluating Options and Futures for Risk Management

Symmetry Asset Management is overseeing a diversified portfolio for a family office with a focus on capital preservation. The portfolio consists mostly of equities, but with increasing concerns over potential market destabilization due to geopolitical tensions, the firm is considering employing options as a risk management tool. Specifically, the firm is contemplating whether to implement protective puts on equity positions to hedge against downside risk, while also exploring the potential use of equity index futures for broader market exposure management. Given the potential costs and benefits of these strategies, the Portfolio Manager is seeking to determine the most suitable option for risk mitigation. Which of the following statements is the most accurate regarding the use of options and futures in this context?