We have portfolio that consist of 15 companies. Nestle Contineltal AG Borg Warner Michael Kors Inc Mondelez LVMH Polaris Industries The Walt Disney Company Activision Blizzard The Macerich Company Western Digital Corporation Union Pacific Company GAP Gilead Sciences Advanced Semiconductor Engineering We are mid-term investor and our strategy is buy and hold. We would like to mention that we will be two types of hedging risks. Market risk and properrisk on proper stocks. The main fundamental difference between options and futureslies in the obligations they put on their buyers and sellers. An option gives the buyer the right,but not the obligationto buy (or sell) a certain asset at a specific price at any time during the life of the contract. A futures contract gives the buyer the obligationto purchase a specific asset, and the seller to sell and deliver that asset at a specific future date, unless the holder's position is closed prior to expiration. Aside from commissions, an investor can enter into a futures contract with no upfront cost whereas buying an options position does require the payment of apremium. Compared to the absence of upfont costs of futures, the option premium can be seen as the fee paid for the privilege of not being obligated to buy theunderlyingin the event of an adverse shift in prices. The premium is the maximum that a purchaser of an option can lose. An option that can be exercised anytime during its life. American options allow option holders to exercise the option at any time prior to and including itsmaturity date, thus increasing the value of the option to the holder relative to European options, which can only be exercised at maturity. We want to have American style put option on this shares to protect us from withdraw at period of time. We hedge volatile securities that are strongly tied to the news. 1)Disney Risk- Star Wars film would not be successful Strike 116 Price 4,25 date 31 December 2015 2) Activision Blizzard This company will depend on the success of the Warcraft film. But the film will be released on May 25 and the put option is quite expensive, so you should buy it closer to the release of the movie. 3) Borg Warner On quotations of the shares of a very serious impact statements of the company. We want to hedge at least from a weak first quarter report. Strike 52,5 Price 9,5 Date 15 April 2016 4) GAP Companies will have to convince the market that they can earn more and grow. Gap is in stagnation. We want to hedge against weak outcome of this year. Strike 31 Price 5,15 date 15 January 2016 5) Michael Kors Wall street estimates Michael Kors Inc, as well as 4 years ago, ignoring the tremendous growth in key financial indicators. We want to hedge this stock in case of weak results of first five month of 2016. Strike 50 Price 8,90 date 15 May 2016 6) Western Digital We want to hedge against the risk of an unsuccessful integration of SanDisk and simply weak results of first four month of 2016 Strike 70 Price 10,25 Date 15 may 2016 Marker risk There is a big probability that FRS will increase in the next year short-term interest rates (the so-called federal funds rate). It is not known how the growth of short-term rates will affect the long-term. The key parameter by which to judge the effects of raising rates will yield ten-year US bonds. In theory, the yield on ten-year interest rates should follow the increase in short-term profitability. The third Fed tightening cycle, from 2004 to 2006. He appeared in many countries. Despite the fact that the Fed has raised rates from 1% to 5.25%, long-term interest rates have hardly moved. Fed Chairman Alan Greenspan called this phenomenon "a mystery." And there is a question how this rising short term interest rate will effect on s&p 500. Major broad-based indices, such as the S&P 500, have very actively traded European-style options. European option can only be exercised at the end of its life, at its maturity. I consider that we can buy Short S&P500 from Proshares. Offering the nation’s largest lineup of alternative ETFs, ProShares helps investors build better portfolios by providing access to alternative investments delivered with the liquidity, transparency and cost effectiveness of ETFs. After touching the top end of its long-term trading channel, the S&P 500 could be in for a correction. And we can hedge against any short-term weakness with an inverse exchange traded fund. U.S dollar will strengthen. For 30% of our portfolio it is good because they are not USA companies. So I consider that we should have U S dollar position. I consider that it would should have Vanguard Long-Term Corporate Bond Index Fund Admiral Shares. Our portfolio is for 5 years. And this fund has 5 years Cumulative total returns 37,81%. It is better than benchmark Barclays US 10+ Year Corp Index(36,6). A non-money market fund's SEC yield is based on a formula mandated by the Securities and Exchange Commission (SEC) that calculates a fund's hypothetical annualized income, as a percentage of its assets. A security's income, for the purposes of this calculation, is based on the current market yield to maturity (in the case of bonds) or projected dividend yield (for stocks) of the fund's holdings over a trailing 30 day period. This hypothetical income will differ (at times, significantly) from the fund's actual experience; as a result, income distributions from the fund may be higher or lower than implied by the SEC yield. The SEC yield for a money market fund is calculated by annualizing its daily income distributions for the previous seven days. Sec yield of this fund is 4,91% This low-cost index fund invests in U.S. dollar-denominated, investment-grade, fixed-rate, taxable securities issued by industrial, utility, and financial companies, with maturities greater than 10 years. Because long-term bonds tend to be very sensitive to interest-rate changes, one of the fund’s key risks is that increases in interest rates may reduce the price of the bonds in the portfolio, which would reduce the fund’s share price. Investors who are looking for a fund that seeks to provide interest income and are able to tolerate significant price fluctuations may wish to consider this fund.