Stock Index Futures Contracts Are Tools Used by Equity Investors

question 18

Multiple Choice

Stock index futures contracts are tools used by equity investors to reduce:

• A) Interest rate risk.
• B) Systematic risk.
• C) Exchange rate risk.
• D) All of these.
• E) None of these.

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Definitions:

Contagion Theory

A sociological perspective that suggests ideas, behavior, and attitudes spread through populations like diseases.

Solidarity Theory

A social and political theory that emphasizes unity or agreement of feeling or action, especially among individuals with a common interest; mutual support within a group.

Symbolic Interactionism

A sociological perspective focusing on the ways in which individuals interpret and give meaning to the world through symbolic interactions.

Resource Mobilization Theory

A theory in social movements indicating that the success of social movements depends on resources such as money, labor, and the social organization of these resources.