Um, maybe if you let us see the rest of your homework we could do it for you. There is no hedging strategy that ensures profitability beyond the risk free rate of anything.

1. What is the most basic hedging strategy to insure the profit of a mutual fund? Why?

2. During the financial crisis of 2008, in the first month after the market collapse, most of the investing funds' hedging strategies held up and the investors remained calm but in the next month even those strategies crashed. Why did this happen?