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You Are Given the Following Information About a Portfolio You

question 5

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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 3.477 B) Buy 3.477 C) Sell 4.236 D) Buy 4.236 E) Sell 11.235 How many contracts should you buy or sell to hedge your position Allow fractions of contracts in your answer.


Definitions:

Demand Instrument

A financial document that requires immediate payment upon presentation.

Specific Time

A precise or particular moment or duration identified for an event or action.

Negotiable Instrument

A written document guaranteeing the payment of a specified amount of money, either on demand or at a set time.

Relative Permanence

The quality of a negotiable instrument that ensures its longevity.

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