Multiple Choice
If a portfolio manager believes stock prices will fall and knows that a block of funds will be received in the future,then he should
A) sell stock index futures short.
B) buy stock index futures long.
C) stay out of the futures market.
D) borrow and buy securities now.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q42: A financial contract that obligates one party
Q43: One advantage of using options to hedge
Q44: Open interest allows investors to change the
Q45: Explain how a short hedge could be
Q46: If you buy an option to buy
Q48: An option that can be exercised only
Q49: A contract that calls for the investor
Q50: Discuss the advantages of using swaps to
Q51: If you buy a futures contract on
Q52: The seller of an option has the<br>A)