How Can the Portfolio Manager Use Futures Markets to Protect

question 91

Multiple Choice

How can the portfolio manager use futures markets to protect against the risk exposure of rising interest rates?

• A)Buy interest rate futures.
• B)Sell currency futures.
• C)Buy currency futures.
• D)Sell interest rate futures.
• E)Sell stock market index futures.

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Definitions:

Aggressive Behaviors

Actions or conducts that are assertive, forceful, or hostile, often intended to dominate or control.

Social Discounting Bias

The tendency to undervalue the future well-being or outcomes of others compared to one's own immediate needs or desires.

Defense Mechanism

Psychological strategies employed by individuals to cope with reality and to maintain self-image.

Social Customs

Established traditions, practices, and behaviors that are widely accepted and followed by a specific society or cultural group.