"Pension funds seeking safety of principal and maximum income would use which investment strategies?"

Purchase government and agency securities and sell covered call contracts.

Explanation:

Purchase government and agency securities and sell covered call contracts because the pension amount or fund must be managed prudently. Therefore, the purchase of government securities suitable as the sale of its covers calls contract. While short sell covers more risk so it is not suitable. Additionally, sell short govt. securities include the sale of naked call contracts.

answer; buying the bill at a discount from the face value to be received at maturity;