You Believe That the Spread Between the September S&P 500

question 12

Multiple Choice

You believe that the spread between the September S&P 500 future and S&P 500 index is too large and will soon correct. To take advantage of this mispricing a hedge fund should ________.

• A)buy all the shares in the S&P 500 and write put options on the S&P 500 index
• B)sell all the shares in the S&P 500 and buy call options on S&P 500 index
• C)sell S&P 500 index futures and buy all the shares in the S&P 500
• D)sell short all the shares in the S&P 500 and buy S&P 500 index futures

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Definitions:

Lean Production Layout

An organizational strategy focused on reducing waste within manufacturing systems while ensuring quality and productivity improvements.

Decentralized Maintenance

A strategy where maintenance activities are distributed among various departments or sections of a business, rather than being centrally managed.

Small Production Batches

Manufacturing process involving the production of goods in small quantities, allowing for flexibility and customization.

Lean Manufacturing

A systematic method for waste minimization within a manufacturing system without sacrificing productivity, focusing on adding value and reducing non-value-adding activities.