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You Are Given the Following Information About a Portfolio You

question 42

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You are given the following information about a portfolio you are to manage.For the long term, you are bullish, but you think the market may fall over the next month. You are given the following information about a portfolio you are to manage.For the long term, you are bullish, but you think the market may fall over the next month.   How many contracts should you buy or sell to hedge your position? Allow fractions of contracts in your answer. A) sell 1.714 B) buy 1.714 C) sell 4.236 D) buy 4.236 How many contracts should you buy or sell to hedge your position? Allow fractions of contracts in your answer.


Definitions:

Ionic Bond

A chemical bond formed between two atoms when one atom transfers an electron to another, leading to the attraction between positively and negatively charged ions.

Hydrogen Bond

An insubstantial attachment between two molecules produced by the electrostatic allure between a proton of one molecule and an electronegative atom of the other.

Ions

Atoms or molecules that have lost or gained one or more electrons, thus acquiring an electric charge.

Respective Charges

The specific electrical charges on particles or objects, usually defined as positive or negative, which determine their electromagnetic interactions.

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