You Are Given the Following Information About a Portfolio You

question 26

Multiple Choice

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. For a 75-point drop in the S&P 500, by how much does the futures position change?

• A)$200,000
• B)$50,000
• C)$250,000
• D)$500,000
• E)$18,750

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Definitions:

Reward System

A structured plan designed to provide benefits, either monetary or non-monetary, to individuals for achieving specific goals or benchmarks.

Autocratic

A leadership style characterized by individual control over all decisions and little input from group members.