A Long Futures Positions in the S&P500 Has the Effect

question 54

Multiple Choice

A Long futures positions in the S&P500 has the effect of ____ portfolio exposure to equities,while short futures positions in the S&P500 has the effect of ____ portfolio exposure to equities.

• A) Increasing, decreasing.
• B) Decreasing, increasing,
• C) Increasing, increasing.
• D) Decreasing, decreasing.
• E) None of the above.

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Definitions:

General Partner

An owner of a partnership who has unlimited liability and is responsible for the management of the business.

Registered Partnership

A legally recognized form of partnership which is registered with the appropriate government authorities.

Limited Liability

The condition where a company's owners or shareholders are legally responsible for its debts only to the extent of the capital they invested.

Partnership Control

Partnership control refers to the governance or directive influence exercised by partners in a partnership, affecting decision-making and operations.