Multiple Choice
Which of the following is a likely reason for a portfolio manager to sell a stock index future short?
A) He believes the market will rise.
B) He wants to lock in current prices.
C) He wants to reduce stock market risk.
D) Both B and C are correct.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q91: Who would be most likely to buy
Q92: The agency responsible for regulation of the
Q93: How would a firm use exchange rate
Q94: Interest-rate swaps involve the exchange of a
Q95: The purpose of the Commodity Futures Trading
Q97: If a firm must pay for goods
Q98: Futures contracts are standardized.
Q99: The global financial crisis illustrates that derivatives
Q100: With a short contract,the investor (may)<br>A) sell
Q101: With a long contract,the investor (may)<br>A) sell