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:

Performance Potential

The capacity or capability of an individual or system to achieve and maintain high levels of performance, often in a specific context.

Express Warranty

An explicitly stated assurance by a seller that the goods or services offered meet certain quality or performance standards.

Factor

An element or component that contributes to or influences a situation, outcome, or process.

Basis of the Bargain

The primary conditions and understandings that form the foundation of a contractual agreement.