If You Take a Futures Position in a Stock Index

question 80

Multiple Choice

If you take a futures position in a stock index futures to offset the risk of a market decline that affects your investment portfolio, you are

• A) Doing am arbitrage trade
• B) Doing a reserve trade
• C) Creating a cross-hedge
• D) Doing a close-out
• E) Creating a "triple witch"

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Definitions:

Demonstration

A method of teaching or showing how something works or is performed, often through practical examples or experiments.

Role-Play

A teaching or therapeutic technique that involves acting out or performing a role.

Exit Survey

A questionnaire provided to participants (such as employees or students) at the end of an event, course, or tenure to gather feedback on their experience.

Focus Group

A research method involving a small, diverse group of people who discuss a particular subject or product, providing feedback and insights.