The following are the responsibilities of a pension plan fiduciary:
To act solely in the interest of the plan.
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To act for the exclusive purpose of providing benefits to the plan participants.
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To act with the care, skill, prudence, and diligence as defined by the prudent man.
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To diversify the plan's assets so as to minimize the risk.
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To refrain from engaging in prohibited transactions.
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A put is exercised when the price of the underlying falls. In this case, the trader will exercise the put if the stock price were to fall below $45. The gain upon exercise will offset the loss on the stock.
However, the put will not be exercised until the stock price reaches 45. Thus, the first part of the loss equal to $5 (=50 - 45) will be borne by the trader. He also loses the premium paid for the option upon exercise.

The value of any asset is the present value of its expected future cash flows discounted at the appropriate rate of return.

A dramatic increase in the demand for short-term U.S. Treasury issues will cause the yields on these issues to fall relative to intermediate-term and long-term issues. This will have the following effects on the U.S. Treasury Yield curve: A flat yield curve will become upward sloping An upward sloping yield curve will steepen An inverted yield curve will flatten (or in extreme cases will become upward sloping).
The reason for these shifts is that a decrease in the yield on short-term Treasury issues versus intermediate and long-term U.S. Treasury issues will cause a shift in the yield spread between these securities, i.e. the difference between the yields on short-term issues and the yields on intermediate and long-term issues will be change. The U.S. Treasury Yield Curve will illustrate this change.